Econ 101
Something you don't need to survive, but something you would like to have.
Want
Goods used to make other goods and services
Capital
Countries that tend to have a lot of industrialization (Machines/tools used to make other machines/tools)
Developed countries
Government owns all the means of production
Communism
A percentage of the total amount of money in a customer's account.
Interest rate
As the supply of a product goes down, what would the demand do?
Go up
Human time, effort, skills, and talent needed to produce goods and services
Labor
These countries tend to have a higher GDP
Developed countries
Some government, and some private ownership of the means of production
Socialism
The money left over after the costs of producing a product are subtracted from the income gained by selling that product
Profit
The desire to have a good or service, and the number of people who are ready to buy it at a certain price.
Demand
When there aren't enough resources to meet everyone's demands
Scarcity
This is the measure of all the goods and services a country produces over a year
GDP (Gross Domestic Product)
Private ownership of the means of production
Capitalism
The income not spent on immediate needs and wants
Savings
The amount of a good or service that businesses are willing and able to produce.
Supply
Government goods and services the public consumes.
Highways, libraries, airports are examples
Public goods
These countries tend to have a lower life expectancy
Developing countries
The use of money today, such as buying stock in a company, in order to earn future benefits
Investment
The value of something you give up in order to get something else
Opportunity Cost
The process in which countries are increasingly linked to each other through culture and trade.
Globalization
These countries tend to have a higher literacy rate
Developed
The United States is an example of this system
Capitalism
An increase in the rise in prices and fall in the purchasing power of money
Inflation