Chapter 19

  1. goods
    tangible products that we use to satisfy our wants and needs
  2. sevices
    • work preforemed by a person for someone else
    • (haircuts, entertainment, home repairs)
  3. factors of production
    • resources necessary to produce goods and services
    • (tree, truck, cut tree, sell paper)
  4. natural resources
    • gifts of nature tha tmkae production possible
    • (land, animals)
  5. Labor
    • human effort directed toward producing goods and services
    • (farmers, truckers, carpenters, electricians)
  6. capital
    • previously manufactured goods used to make other goods and services
    • (tools, hammers, machines)
  7. entrepreneur
    • individual who starts a new business
    • (inventer)
  8. GDP
    total dollar value of all final goods and services produced in a country during a single year
  9. Standard of living
    • the material well being of an individual measured by how well thier necessities and luxuries are satisfied
    • (high GDP=high ---)
  10. Factor markets
    • a market where productive resources are bought and sold
    • (labor, work, office)
  11. Product markets
    • a market where producers offer goods and serivces for sale
    • (grocery store, mall)
  12. Consumer Sovereignty
    • the role of consumers as the rulers of the market, determining what products will be produced
    • consumer=king
  13. Profit
    the money a business recieves for its services above its costs
  14. Voluntary Exchange
    the act of buyers and sellers freely and willingly engaging in market transactions
  15. Discretionary Income
    • money income left after necessities have been bought and paid for
    • (extra money: movies, vacation)
  16. disposable income
    • money income left after all taxes on it have been paid
    • (basic needs: food, rent, clothes)
  17. consumerism
    • a movement to educate buyers about the purchases they make
    • to demand better and products from manufacturers
Card Set
Chapter 19