Vocabulary 1
an individual who pays some amount of money or the thing required to consume goods and services
consumer
someone who creates and supplies goods or services
producer
social science that studies the production, distribution, and consumption of goods and services
economics
materials that satisfy human wants
goods
a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency
inflation
means by which the exchange of goods and services takes place as a result of buyers and sellers being in contact with one another
market
general body of wage earners
labor
the basic material from which a product is made
raw materials
transaction in which no physical goods are transferred from the seller to the buyer
service
a quantity of something on hand or available, as for use; a stock or store
supply
a term for financial assets, such as funds held in deposit accounts
capital
alternative cost, of making a particular choice is the value of the most valuable choice out of those that were not taken
opportunity cost
they are the inputs that are used to create things or help you provide services
resources
An amount that has to be paid or given up in order to get something
cost
The amount of any given commodity that people are ready and able to buy at a given time for a given price.
demand
economic system in which production and prices are determined by unrestricted competition between privately owned businesses
market economy
system where the government determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale
command economy
a market system of resource quotas, commerce, and trade in which free markets coexist with government intervention
fixed economy
at least two products that could be used for the same purpose by the same consumers
substitute goods
that human wants will always exceed the resources available to fulfill those wants
scarcity
part of economics concerned with large-scale or general economic factors, such as interest rates and national productivity
macroeconomics
part of economics concerned with single factors and the effects of individual decisions
microeconomics
term that describes a good whose demand drops when people's incomes rise
inferior good
an individual who creates a new business, bearing most of the risks and enjoying most of the rewards
entrepreneur
A good with a negative cross elasticity of demand. This means a good's demand increases when the price of another good decreases.