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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 the 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 people to behave in a certain way |
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Competition |
The struggle among producers for the dollars of consumers |
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Invisible hand |
Term economists use to describe the self-regulating nature of the marketplace |
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Consumer sovereignty |
The power of consumers to decide what gets produced |
