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Chapter 1
Costumer
Term | Definition |
---|---|
Command Economy | An economic system in which the government owns most resources and makes most economic decisions. |
Consumer | Anyone who buys or uses products |
Demand | The quantity of a good or service that consumers are willing and able to buy at various prices during a given time period |
Economics | The study of how economic systems work |
Equilibrium Price | The price at which the quantity supplied exactly equals the quantity demanded o fa product |
Market Economy | Economic system in which the people, rather than the government, own the resources and run the businesses |
Mixed economy | An economic system that has characteristics of a market and a command economy |
Opportunity Cost | The value of your next best alternative whenever you make a choice |
Profit | The difference between the money received from selling a product and the cost of producing that product |
Scarcity | The basic economic problem that consumers's wants are always greater than the resources available to satisfy those wants |
Supply | Particular characteristics that distinguish one garment from another |
Traditional Economy | An economic system in which production methods are passed from one generation to the next |