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Definition
| basic requirement for survival |
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Term
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Definition
| means of expressing a need |
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Term
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Definition
| known as free products because they are so plentiful |
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Term
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Definition
| goods and services that are useful, relatively scarce, and transferable to others |
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Term
| List and describe the 4 types of goods. |
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Definition
Consumer Good- intended for final use by individuals Capital Good- a manufactured food used to produce other foods and services Durable Good- good that lasts three years or more when it is used on a regular basis Nondurable Good- an item that lasts for less than three years when it is used on a regular basis
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Term
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Definition
| people who use foods and services to satisfy wants and needs |
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Term
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Definition
| the process of using up goods and services in order to satisfy wants and needs |
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Term
Define CONSPICUOUS CONSUMPTION |
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Definition
| the use of a good or service to impress others |
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Term
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Definition
| refers to something that has a worth that can be expressed in dollars and cents |
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Term
| describe the paradox of value |
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Definition
| such things as water were essential to life yet had no value. Diamonds are not essential but had much higher value. The value goes up if the item is scarce. |
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Term
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Definition
| the capacity to be useful to someone. |
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Term
| how does utility relate to value? |
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Definition
| it has worth that can be expressed in dollars and cents like value |
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Term
| how does utility help explain the diamond-water paradox? |
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Definition
| it is the solution. utility of a good or service varies from one person to the next |
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Term
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Definition
| the sum of those economic products that are tangible, scarce, useful, and transferable from one person to another. |
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Term
| why are services not included as wealth? |
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Definition
| services are intangible where as wealth is not. |
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Term
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Definition
| the efficient use of productive resources. |
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Term
| what are the two ways production increases? |
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Definition
-more ourput can be produced with the same amount of inputs. -same output can be produced with fewer inputs
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Term
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Definition
| productive inputs do whatever task they are able to do best. |
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Term
| what is another term for specialization? |
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Definition
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Term
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Definition
| the sum of skills, abilities, health, and motivation of people. |
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Term
| What are the benefits to both the employer and employee? |
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Definition
Employers are usually rewarded with highr quality products and increased profits. Workers often benefit from higher pay, better jobs, and more satisfaction with their work and leisure.
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Term
| What is included in the product market? |
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Definition
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Term
| what is included in the factor market? |
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Definition
land labor capital entrepreneurs |
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Term
| what do individuals provide in the factor market? |
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Definition
| spend income, sell scarce resources |
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Term
| what do businesses provide in the product market? |
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Definition
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