1
grow or increase
expansion
goods or services provided by the government that the public consumes
public goods
people and business make finished products from raw materials
manufacturing industries
labor in exchange for payment
income
developed countries
the government controls the economy Gov decides what to produce, how and how much. Sets wages and prices
command economy
businesses that sell directly to the final consumers
retail industries
the value of all goods and services produced within a country in a single year
Gross domestic product
4 main factors needed to produce goods and services
factors of production
business that sell to businesses; help move goods from manufacturing to the market
wholesale industries
combine elements of traditional, market, and command economics
mixed economies
countries with less productive economies and a lower quality of life
developing countries
primary activities that focus on growing crops and raising livestock
agricultural industries
businesses that provide services rather than goods
service industries
most common, is based on private ownership, free trade and competition.
market economy
occurs when producers in 1 nation depend on others to provide goods and services
economic interdependence
money an individual or business has left after paying expenses
profit
the work people do is based on long established customs
traditional economy
in trade off, it is the value of what you give up
opportunity cost
3 basic types of economic systems
1. traditional
2. command
3. market
when there are not enough resources to meet people's wants
scarcity
another word for: reduction
contraction
a system of producing, selling and buying goods and services
economy
citizens are free to exchange goods and services, choose careers, own and operate businesses
free enterprise system
main factors of production (4)