Flashcards in Vocab 1 Deck (22):
Desire to make money that motivates people to produce and sell goods and services
Economic system in which the government minimizes it's interference in the economy
Human effort directed toward producing goods and services
Natural resources and surface land and water
Previously manufactured goods used to make other goods and services.
Resources of land, labor, capital, and entrepreneurship used to produce goods and services
Factors of production
Sacrificing one good or services in order to purchase or produce another.
System in which individuals own the factors of production
System in which the government controls of production and makes all decisions about their use
Tangible objects that can satisfy people's wants or needs
The amount of output ( goods and services) that results from a given level of inputs ( land, labor, capital, and entrepreneurship
The material well being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied
Standard of living
The process of freely exchanging goods and services between buyers and sellers
The production and distribution of goods and services in society
The use of science to develop new products and new methods for producing and distributing of goods and services
Whatever is owned by individual rather than government
When individuals take risks to develop new products and start new business in order to make profits
Value of the next best alternative given up for the alternative that was chosen
Rivalry among producers or sellers of similar goods and services to win more business
Amount earned after a business subtracts it's costs from it revenues.
Basic economic problem that results from a combination of limited resources and unlimited wants.