economics vocab

capital goods

machinery produced to make other goods and services

capital reources

money and machines used to produce goods or services.

command economic system

An economy in which the government owns almost all the land and natural resources and makes most of the decisions. (such as what to produce and how, but not on what job to take)


Consumer willingness and ability to buy products


Study of how societies decide what to produce, how to produce it, and how to distribute what they produce

economic systems

How goods and services are supplied to buyers or consumers, and how the resources and production of these goods are organized. Examples are Free Enterprise, Command, Socialist or Barter.

economic growth

steady growth in the productive capacity of the economy (and so a growth of national income)


Goods and Services sold to other countries


Items purchased to satisfy needs and wants

human rescources

The activities that deal with the hirinng, firing, training and other personnel(employee) issues.


Goods and services bought domestically but produced in other countries


(n) money that is earned from work, investments, business, etc.

mixed market economic system

an economy in which free enterprise is combined with and supported by government decisions in the marketplace


Food, clothing, and shelter

natural resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain




A source or supply or support


Activities that are consumed at the same time they are produced

traditional economic system

A system in which customs handed down from generation to generation determine how a society is organized to produce, distribute, and consume goods and services.


Goods that are purchased to add comfort or pleasure to life