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Flashcards in Vocab 1 Deck (22):
1

Desire to make money that motivates people to produce and sell goods and services

Profit incentive

2

Economic system in which the government minimizes it's interference in the economy

Laissez- faire

3

Human effort directed toward producing goods and services

Labor

4

Natural resources and surface land and water

Land

5

Previously manufactured goods used to make other goods and services.

Capital

6

Resources of land, labor, capital, and entrepreneurship used to produce goods and services

Factors of production

7

Sacrificing one good or services in order to purchase or produce another.

Trade off

8

System in which individuals own the factors of production

Capitalism

9

System in which the government controls of production and makes all decisions about their use

Command economy

10

Tangible objects that can satisfy people's wants or needs

Goods

11

The amount of output ( goods and services) that results from a given level of inputs ( land, labor, capital, and entrepreneurship

Productivity

12

The material well being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied

Standard of living

13

The process of freely exchanging goods and services between buyers and sellers

Market

14

The production and distribution of goods and services in society

Economy

15

The use of science to develop new products and new methods for producing and distributing of goods and services

Technology

16

Whatever is owned by individual rather than government

Private property

17

When individuals take risks to develop new products and start new business in order to make profits

Entrepreneurship

18

Value of the next best alternative given up for the alternative that was chosen

Opportunity cost

19

Rivalry among producers or sellers of similar goods and services to win more business

Competition

20

Amount earned after a business subtracts it's costs from it revenues.

Profit

21

Basic economic problem that results from a combination of limited resources and unlimited wants.

Scarcity

22

Actions that can satisfy people's wants and needs

Services