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| This is a basic requirement for survival. People have basic needs like food, clothing and shelter. |
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| this is a means of expressing a need. For example, food is a basic need. However, you might "want" pizza, a salad, etc. You choose how to meet your need for food. |
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| goods which are so plentiful that they have no price. |
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| goods and services which are useful, relatively scarce and transferable to others. |
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| a good that is intended for final use by an individual. If you go to the store and buy a pair of pants to wear. |
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| a good used to make another product. (ex. Factory, Oven, ect) |
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| goods that last three years or more. |
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| an item that lasts less than three years. |
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| work that is performed for someone. |
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| people who use goods and services to satisfy wants and needs. |
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| the process of purchasing and using up goods and services in order to satisfy wants and needs. When you buy clothes and wear them. |
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| the use of a good or service to impress others. |
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| refers to something that has a worth that can be expressed in terms of dollars and cents. |
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| what makes something valuable is how available it is. Diamonds are valuable – they are not necessary to live but they are scarce so people who want them are willing to pay a much higher price. |
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| the capacity to be useful to someone. If something isn't useful to you, then you will not purchase it. |
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| the sum of those economic products that are tangible, scarce, useful, and transferable from one person to another. |
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| the process of creating goods and services. |
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| the efficient use of productive resources. Productivity goes up when you can produce more output with the same inputs. For example, if you usually produce 1 written paper in an hour and you get so good that you can produce 2 written papers in an hour, then you have become more productive. You have produced more in the same amount of time. |
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| you do whatever you can do best – you specialize in that task. If I am a really fast sewer then I would specialize in sewing rather than trying to cook. |
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| workers perform fewer tasks more frequently. I would sew all of the time instead of trying to sew and cook. Someone else would then do the cooking. |
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| the skills and abilities of people that go into the production of goods and services. |
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| actions in one part of the country or the world have an economic impact on what happens elsewhere. For example, bad weather in one part of the world can affect sugar prices in the US. This then makes the price of US goods that contain sugar to go up. |
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| a location that allows buyers and sellers to exchange economic profits. |
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| where the factors of production are bought and sold. If you go and get hired for a job, you have just "sold" your labor in the factor market. |
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| markets where final goods and services are sold. If you go to the store and buy clothes. |
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| the quality of life based on the possession of necessities and luxuries that make life easier. |
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| an economy in which consumers and privately owned businesses, rather than the government, jointly make the majority of the WHAT, HOW and WHO decisions. |
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