Section 1
Difference between Goods and Services:-
A good is a tangible or physical product that someone will buy, tangible meaning something you can touch, and a service is when you pay for a skill. A service is something intangible, which can't be physically touched or stored.
The knowledge, skill, training, and experience that individuals need to produce goods and services within their economy
Human Resource
An economy that is based on traditions, customs, and beliefs
Traditional Economy
The fundamental right of every human to control his or her own labor and property
Freedom
Includes the purchase of goods and services
Product market
When you choose one thing which causes you to have to give up, or sacrifice, another
Trade-Off
The sum of all the benefits and rights arising from ownership
Value
A financial gain from a business transaction
Profit
A place where goods and services are sold and purchased
Market
The legal framework that defines what an owner can do with their property such as how it may be used and traded
Private Property Rights
The total satisfaction or benefit derived from consuming a good or service
Utility
Interrelated production and consumption activities to allocating resources
Economy
Difference between NATIONALIZE and PRIVATIZE:-
The only economy type that exists in reality and is NOT a model
Mixed Economy
A french phrase meaning (leave things alone)
Laissez-Faire
The relationship between two individuals, groups, sects, businesses, regions, or countries
Interdependence
How money moves through an economy in a constant loop
Circular Flow Model (CFM)
A transaction where two people trade goods or services freely
Voluntary exchange
What is the difference between CAPITALISM and SOCIALISM?
Capitalism is based on individual initiative and favors market mechanisms over government intervention. Socialism is based on government planning and limitations on private control of resources.
Name the four market economy systems:-
Command Economy - Traditional Economy - Global Economy - Market Economy
The key driver of economic growth of countries, regions and cities
Technology
An economic system where a government body makes economic decisions regarding the production and distribution of goods
Centrally Planned Economy
Define the following economic goals: Efficiency - Equity - Security - Stability - Growth
- Efficiency: the government should be maximizing products
- Equity: equal distribution of resources
- Security: protecting products from danger
- Stability: ensuring that the economy is stable
- Growth:
Competition
Includes factors of production
Factor market