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Economics:Competency 2
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resource markets
where you exchange your labor for money to spend on goods and services
circular flow
the movement of money, products and resources between households and businesses
competition
rivalry among businesses for the consumer's dollar
economic growth
increased production of goods and services
medium of exchange
a function of money that enables people to make exchanges more easily with one another
model
a simplified representation or map of an economy
consumers
those who buy goods and services
price system
provides signals for what will be produced
property right
ownership of a good or resource
profit
money remaining after deduction costs from sales
when resources are privately owned, how do people treat their property?
they use it carefully and productively
what do prices usually tell businesses?
about the values consumers put on various products
what does competition need?
scarcity
in resource markets, businesses compete against ________________.
one another
what does entrepreneurship do?
promote economic growth
what are the seven goals of the US economic system?
full employment
- anyone who wants a job can get one
economic growth
- an increase in output of goods and services
price stability
-the prices of goods and services don't flucuate significantly
economic freedom
- freedom of choice in economic decisions
economic security
- the basic needs of everyone are met
efficiency
- getting the maximum output from the resources used to produce goods and services
barter
an exchange of goods and services without using money
money
anything that is generally accepted as payment for goods and services
what are the three functions of money?
medium of exchange
- when people agree on the value of a good or service
store of value
- you can hold on to money for use in the future
measure of value
- the value of the money
free enterprise
people in their economic roles are free to make choices
specialization
a process businesses and people focus on producing one or a few parts on an entire product
the price system
monetary prices as a message system to facilitate exchanges between buyers and sellers
entrepreneurship
the motivation that drives business leaders to compete and react to changing conditions in the market
What is an advantage of money as a medium of transaction?
it decreases the cost of the exchange
If the circular flow chart were a clock, what would be at 12:00, 3:00, 6:00 and9:00?
12:00
: product market
3:00
: businesses
6:00
: resource market
9:00
: households
Give an example of how each aspect of the US's mixed economy effects your/your family's life.
traditional
: celebrate holidays
market
: buisnesses compete for my dollar
government
: parents have to pay taxes
Author
alipeace11
ID
42053
Card Set
Economics:Competency 2
Description
high school economics claSS
Updated
2011-01-21T18:30:27Z
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