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31 Cards in this Set

  • Front
  • Back
Human effort directed toward producing goods and services
Previously manufactured goods used to make other goods and services
Individuals who start new businesses, introduce new products, and improve management techniques
Consumer Sector
A place where workers earn wages, salaries, and tips in exchange for their labor
Business Sector
Receives payments in the product markets where they sell goods and services to consumers
Foreign Sector
A portion of the flow of economic activity representing all the countries in the world
Gross Domestic Product
Total dollar value of all final goods and services produced in a country during a single year
Standard of Living
The material well-being of an individual, group, or nation measured by how well their necessities and luxuries are satisfied
Factor Market
A market where productive resources are bought and sold
Product Market
A market where producers offer goods and services for sales
Economic Growth
Occurs when a nation's total output of goods and services increases over time.
The degree to which resources are being used efficiently to produce goods an services
When people, businesses, regions, and or nations concentrate on goods and services that they can produce better than anyone else
Division of Labor
The breaking down of a job into separate, smaller tasks to be performed individually
Economic Interdependence
A reliance on others, as they rely on you, to provide goods and services to be consumed
Reward offered to try to persuade people to take certain economic actions
Immediate Gratification
***Add Later***
A system in which private citizens own most, if not all, of the means of production and decide how to used them within legislated limits
Free Enterprise
Economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference
Consumer Sovereignty
The role of the consumer as the ruler of the market, determining what products will be produced
Private Property Rights
The freedom to own and use our own property as we choose as long as we do not interfere with the rights of others
The money a business receives for its products or services over and above its costs
Profit motive
The driving force that encourages individuals and organizations to improve their material well-being
Voluntary exchange
The act of buyers and sellers freely and willingly engaging in market transactions
A movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers
The promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty
Ethical Behavior
The responsibility of consumers to respect the rights of producers and sellers
Disposable Income
Money income left after all taxes on it have been paid
Discretionary Income
Money income left after necessities have been bought and paid for
To set aside income for a period of time so that it can be used later
The payment people receive when they lend money or allow someone else to use their money