| A | B |
|---|
| good | a useful, tangible item that satisfies a want |
| consumer good | goods intended for final use by individuals |
| durable good | any good that lasts for three or more years when used on a regular basis ie. automobile |
| nondurable good | any good that lasts less than three years when used on a regular basis ie. Notebook paper |
| service | work performed for someone |
| value | Monetary worth of a good or service as determined by the market |
| paradox of value | contradiction between the high monetary value of a non-essential item (diamond) and the low value of an essential item (water)……Adam Smith |
| utility | ability or capacity of a good or service to be useful and give satisfaction to Someone |
| wealth | sum of tangible economic goods that are scarce, useful, and transferable from one person to another |
| market | meeting place or mechanism that allows buyers and sellers to come together |
| factor market | market where producers sell their goods and services |
| product market | market where goods and services are bought and sold |
| economic growth | when a nation’s total output of goods and services increases over time |
| productivity | measure of the amount of goods and services produced with a given amount of resources in a specific period of time |
| human capital | the sum of people’s skills, abilities, health, knowledge, and motivation |
| division of labor | division of work into a number of different tasks to be performed by a number of different workers |
| specialization | assignment of tasks to the workers or areas that can perform them more Efficiently |
| economic INTERdependence | we rely on others, and they rely on us to provide most of the goods and services we consume |
