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12 Cards in this Set
- Front
- Back
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market |
an arrangement that allows buyers and sellers to exchange things |
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specialization |
the concentration of productive efforts of individuals and firms on a limited number of activities |
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household |
a person or group of people living in the same residence |
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firm |
an organization that uses resources to produce a product which it then sells |
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factor market |
Market in which firms purchase the factors of production from households |
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profit |
the financial gain made in a transaction |
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product market |
the market in which households purchase the goods and services that firms produce |
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self-interest |
one's own personal gain |
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incentive |
an expectation that encourages peopleto behave in a certain way |
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competition |
the struggle among producers for the dollars of consumers |
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invisibility hand |
term economists use to describe the self-regulating nature of the market place |
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consumer sovereignty |
the power of consumers to decide what gets produced |
