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The act of buying or using goods and services
consumption
The highest valued benefit (or thing) that you have to give up in order to get something else
opportunity cost
A condition that exists when resources are limited in comparison to the number and variety of wants people have
scarcity
An amount; how much of something
quantity
The practical application of science to commerce or industry
technology
When the basic economic decisions are made according to long established patterns of behavior that are unlikely to change
traditional economy
When the government or a central authority owns or controls the factors of production and makes all basic economic decisions
command economy
A system in which private individuals own the factors of production and are free to make their own choices about production, distribution, and consumption
market economy
The difference between the total cost of production and the total revenues received from buyers
profit
To use your money to help a business get started or grow with the hope that the business will earn a profit in which you can share
invest
The system in which individuals in a market economy are free to undertake economic activities with little or no control by the government
free enterprise
A system in which people make their own decisions about how to save resources as capital and how to use their capital to produce goods and provide services
capitalism
An economy that is a mixture of the three basic systems
mixed economy
anything that is used to produce other goods and services
capital
Resources needed for producing goods and services
factors of production
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