| A | B |
|---|
| Capital | previously manufactured goods used to make other goods and services |
| Capitalism | economic system in which private individuals own the factors of production |
| Command Economy | system in which the government controls the factors of production and make all decisions about their uses |
| Communism | term used by Karl Marx for his ideal society in which no government is necessary |
| Competition | Rivalry among producers and sellers of similar goods and services to win more business |
| Economics | the study of how individuals and societies make choices about wyas to uyse scarce to fulfill their wants |
| Micro Economics | the branch of economic theory that deals with the behavior and decision making by small units such as individuals firms |
| Macro Economics | the branch of economic theory dealing with the economy as a whole and devision making by large units such as government |
| Factors of Production | Four of them, Not including technology |
| Land | natural resources and surface land and water |
| labor | human effort directed towards producing goods and services |
| Capital | previously manufactured goods used to make other goods and services |
| Entrepreneur | person who organizes, manages, and assumes the risk of a business in order to gain profits |
| Financial Institution | institution (public or private) that collects funds (from the public or other institutions) and invests them in financial assets |
| Financial Market | A market in which buyers and sellers find each other and create or exchange financial assets |
| Free Market System | (Free Enterprise System) economic system in which individuals own the factors of production and decide how to use them within legal limits |
| GDP | total dollar value of all goods and services produced in a nation in a single year |
| GNP | total dollar value of all final goods, services, and structures produced in a year with labor and property supplied by a countries residents (measure of income rather than output) |
| Import | goods bought from other countries for domestic use |
| Export | goods sold to other countries |
| Market Economy | system in which individuals own the factors of production and make economic decisions through free interaction while looking out for their own best interest |
| Mixed Economy | system combining characteristics of more than one type of economy |
| Monopoly | market situation in which a large number of sellers offer similar but slightly different products and in which each has some control over prices |
| Monopolistic | market situation in which a large number of sellers offer similar but silghtly different products and in which each has some control over prices |
| NAFTA (North American Free Trade Agreement) | trade agreement designed to reduce and gradually eliminate tariff barriers among Mexico, Canada and US |
| Oligopoly | Industry dominated by a few suppliers who exercise some control over price |
| Scarcity | condition facing all societies, not being able to have all the goods and services ones wants, because wants exceed what can be made from all available resources and at any given time |
| Socialism | command economic system in which the government controls many but not all the factors of production |
| Standard of Living: Developed | nations with relatively high standard of living and eocnomies based more on industry than on agriculture |
| Standard of Living: Developing | a nation beginning to establish its industry and raise its standard of living |
| Supply | The amount of a good or servfice that consumers are able and willing to buy at various possible prices during a specific time period |
| Demand | the amount of a good or service that consumers are able and willing to buy at various possible prices during a specific time period |
| Tradition Economy | system in which economic decisions are based on customs and beliefs that have been handed down from generation to generation |
| WTO (World Trade Organization) | world's largest trade agreement with more than 140 nations |
