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