Vocab 1
Economics
Social science dealing with how people satisfy seemingly unlimited + competing needs and wants with careful use of scarce resources
Services
an intangible act, performance, or experience purchased by a consumer, company, or government that provides value without transferring ownership of a physical good
Market Economy
an economic system where production, investment, and distribution decisions are guided by price signals created through the forces of supply and demand.
scarcity
the fundamental economic problem where limited resources—such as time, money, and raw materials—are insufficient to satisfy unlimited human wants and needs
Goods
tangible, physical items that satisfy human wants, provide utility (satisfaction), and are scarce, meaning they have limited availability and, usually, a price
Production
the process of transforming inputs—such as labor, raw materials, and capital—into finished goods or services, creating economic value
Consumer
an individual or organization that purchases or uses goods and services primarily for direct personal use or consumption, rather than for resale or production
Supply and demand
a fundamental economic model that explains how prices and quantities of goods are determined in a free market. Demand represents the amount of a product consumers are willing to buy at various prices, while supply represents the amount producers are willing to sell.
Economics
Social science dealing with how people satisfy seemingly unlimited + competing needs and wants with careful use of scarce resources
Services
an intangible act, performance, or experience purchased by a consumer, company, or government that provides value without transferring ownership of a physical good
Distribution
the act of sharing, spreading, or arranging items, resources, or data over a specific area or time.
Producer
an individual, business, or entity that creates, manufactures, or supplies goods and services to satisfy consumer demand
Traditional Economy
an economic system based on customs, history, and beliefs, where production and distribution are determined by tradition rather than market demand or central planning
Production
the process of transforming inputs—such as labor, raw materials, and capital—into finished goods or services, creating economic value
Consumer
an individual or organization that purchases or uses goods and services primarily for direct personal use or consumption, rather than for resale or production
Consumption
the use of goods, services, or resources to satisfy present needs and desires
Capitalism
an economic system based on the private ownership of the means of production (factories, mines, businesses) and their operation for profit
Mixed Economy
an economic system that blends elements of capitalism (private ownership and free markets) with elements of socialism (government regulation and public ownership).
Distribution
the act of sharing, spreading, or arranging items, resources, or data over a specific area or time.
Producer
an individual, business, or entity that creates, manufactures, or supplies goods and services to satisfy consumer demand
Goods
tangible, physical items that satisfy human wants, provide utility (satisfaction), and are scarce, meaning they have limited availability and, usually, a price
Socialism
an economic system characterized by social or collective ownership of the means of production, rather than private ownership
Planned/ Command Economy
an economic system where a central government authority makes all major decisions regarding the production, pricing, and distribution of goods and services
Consumption
the use of goods, services, or resources to satisfy present needs and desires
Capitalism
an economic system based on the private ownership of the means of production (factories, mines, businesses) and their operation for profit