Economics Flashcards
(20 cards)
Economics
a system for allocating resources to meet people’s needs and wants. it determines how goods and services are made and exchanged.
economist
a person who studies the economy
opportunity cost
the cost of giving up one thing for another
goods
physical items such as groceries and clothing
services
actions provided by others such as a doctor or carpenter
choice
the act of selecting or making a decision when faced with two or more possibilities
price incentive
this can motivate people to take an action in buying
market
buyers and sellers exchange goods and services
profitable
makes money after expenses are paid
consumer
someone who buys goods or services
producers
someone who makes goods and services in a market
specialization
when a business or person becomes highly skilled in manufacturing (making) a good
barter
trading of goods and services
trade
buying and selling of goods and services in a market
voluntary exchange
when buyers and sellers exchange products freely. both people benefit from the trade
export
goods that are sent to another country
import
goods that are received from another country
personal budget
a plan of how to spend and save money
spending
giving money for goods and services
saving
this it the taking of money that could be spent and putting it aside for another time
