| A | B |
|---|
| exchange | consumers and producers agree to provide one item for another. |
| barter | exchanging one set of goods for another. |
| money | Any item accepted that is readily available. |
| credit | Allows consumers to use items before completing payment. |
| value | amount of money, or price |
| utility | product or service is useful |
| self-sufficiency | People or societies can fulfill all their needs without outside assistance. |
| interdependence | events or developments in one region influences event in other regions. |
| scarcity | limited economic resources & unlimited wants. |
| allocate | distribute resourcs in order to satisfy greatest number of needs and wants. |
| 3 basic economic questions | What to produce? How to produce? For whom to produce? |
| productivity | Level of output that resultss from a given level of input. |
| efficiency | smallest amount of resources to produce the greatest amount of output. |
| division of labor | assigning small task to each worker. |
| specialization | focus on one activity allows people to work faster an increase production. |
| choice | making decisions based on certain priorties. |
| economics | the study of the choices people make to satisfy their needs and wants. |
| economist | a person who studies economic choices of people. |
| microeconomics | study of the choices make by economic actors. |
| macroeconomics | examines the behavior of entire ecnonomies. |
| producers | People who make things that satisfy consumer's needs & wants |
| consumers | people who decide to buy things |
| goods | physical objects that can be purchased. |
| services | are actions or activities that are performed for a fee |
| resource | anything that people use to make or obtain what they need or want |
| factors of production | resources that can be used to produce goods & services |
| natural resource | items provided by nature. |
| human resource | any human effort exerted during production. |
| captial resource | manufactured materials used to create products, capital goods and the money to purchase them. |
| Capital goods | buildings, structures, machinery & tools used in the production process. |
| Consumer goods | finished products that consumers buy. |
| Technology | is the use of technical knowledge & methods to create new products or make existing ones more efficiently |
| Entrepreneurship | combining orgainizational abilities & risk taking involved in starting a new venture. |
| Entrepreneur | person who attempts to start a new business or product. Risking gain vs failure. |
