Gross Domestic Product
This country has the single largest national economy in the world.
United States
To move ownership of something
transfer
A market where goods and services are for sale.
product market
The sum of people's knowledge and skills that are used to make products.
human capital
The money a business receives for its products or services over and above its costs.
profit
This can be either a good or a service.
product
The well-being of an individual, group, or nation as measured by how well needs or wants are satisfied.
standard of living
To be made up of.
comprise
The breaking down of a job into separate, smaller tasks to be done individually.
division of labor.
The driving force that encourages people and organizations improve their material well-being.
profit motive
Total market value of all final goods and services produced in a country during a single year, also called GDP
gross domestic product
Parts or categories
sectors
The increase in a country's total output of goods and services over time.
economic growth
A system in which private citizens own most of the means of production and decide how to use them with legislated limits.
capitalism
The struggle that goes on between buyers and sellers to get the best products at the lowest prices.
competition
The amount produced is called______
output
A model showing how goods, services, and money flow among sectors and markets in the American Economy.
Circular flow model
The degree to which resources are being used efficiently to produce goods and services.
productivity
Economic system where individuals and businesses compete for profit with a minimum of government interference.
free enterprise
The freedom to own and use our property as we choose, as long as we don't interfere with the rights of others.
private property rights
A risk-taking person who starts a new business, introduces a new product, or improves a technique.
entrepreneur
A market where productive resources are bought and sold.
factor market
When people, businesses, regions or nations concentrate on goods and services that they produce better than anyone else.
specialization
The act of buyers and sellers freely engaging in market transactions.
voluntary exchange
A belief that government should not interfere in the marketplace.
laissez-faire economics