| A | B |
|---|
| economic growth | Occurs when a nation's total output of goods and services increases over time. |
| productivity | A measure of the amount of goods and services produced with a given amount of resources in a specific period of time. |
| specialization | Assignment of tasks to workers, factories, regions or nations tha can perform them most effficiently. |
| Division of Labor | Division of work into a number of separate tasks to be performed by different workers. |
| economic interdependence | This means we rely on others and others and others rely on us , to provide most of the goods and services we consume. |
| market | meeting place or mechanism through which buyers and sellers of an economic product come together. It may be local, regional, national, or global. |
| factor markets | markets in which productive resources are bought and sold. |
| product markets | markets where producers sell their goods and services. |
| economic model | A simplified version of a complex concept or behavior expressed in the form of a graph, figure equation, or diagram. |
| Cost Benefit Analysis | A way of comparing the benefits of an action to the expected costs. |
| assumptions | Something taken for granted;something we think is true. |
| free enterprise economy | A market economy in which privately owned businesses have the freedom to operate for a profit with limited government intervention. |
| standard of living | Quality of life based on ownership of necessities and luxuries that make life easier. |
| mechanism | process or means by which something can be acccomplished. |
| Circular flow diagram | An illustratioon used to show how markets connect people an businesses in the economy. It shows the high degree of economic interdependence in out economy. |
