Definitions
$30
What is scarcity
Scarcity means that there are limited resources, and therefore, people must make choices
what is economy?
An economy, or economic system, is the way a nation makes economic choices about how the nation will use its resources to produce and distribute goods and services.
What is opportunity cost?
Opportunity cost is the process of choosing one good or service over another.
what is a consumer?
●A consumer is anyone who buys a good or a service.
market economy involves ________ government
NO
The toy store owner lost money when Sara purchased the bike. The owner made the bike for $80.00, but sold it to Sara for only $65.00. The toy store owner lost how much?
$15
What is specialization?
Specialization is when an individual or a company specializes in doing one part of a task, and relies on others to complete the other parts.
what is free enterprise?
Free enterprise means competition.
What is interdependence
●Interdependence is when people depend on one another. Specialization results in interdependence.
what is communism
Communist countries have a totalitarian
form of government; this means that the government runs everything and makes all decisions.
what is privatization?
Privatization is a common aspect of transition from a command economy to free enterprise system. Privatization means state-owned industries are sold to private individuals
and companies.