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A3-1: Understanding Basic Economics Principles

AB
resourceAn item used to produce a product or service.
capitalThings used in production that are man-made.
equilibriumWhere suppy and demand curves intersect.
marginal costAdditional cost of each unit of input.
law of demandWhen price is lowered, more of the product is purchased.
complementary enterpriseOne enterprise provides inputs for another.
landEverything in nature used for production.
competitive enterpriseOne enterprise interferes with another.
law of supplyWhen price is lowered, less of the product is supplied.
supplementary enterpriseTwo enterprises are independent, but one provides income to the other.


Agricultural Education Instructor and FFA Advisor
Audubon Community Schools
Audubon, IA

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