chapter 3 vocab

4. rivalry among sellers for consumers’ dollars.
6. a long and severe drop in the GDP.
7. the body of knowledge that relates to producing and using goods and services that satisfy human wants.
10. the desire for scarce material goods and services.
12. to decide how to use its productive resources; that is, to decide what, how, and for whom goods and services will be produced.
13. items of value that individuals have the right to own, use, and sell.
14. the human effort, either physical or mental, that goes into the production of goods and services.
15. an organized way for a
20. refers to the number of products that will be bought at a given time at a given price.
22. authority to provide a good or service to individuals or privately owned businesses.
23. extreme socialism where all or almost all the nation’s factors of production are owned by the government.
25. when a government transfers
26. the incentive as well as the reward for producing goods and services.

1. the rapid rise in prices caused by an inadequate supply of goods and services.
2. a pattern of irregular but repeated expansion and contraction of the GDP.
3. an economic system that uses the aspects of a market and a command economy to make decisions about what, how, and for whom goods and services will be produced.
5. anyone who creates a utility.
8. refers to the number of like products that will be offered for sale at a particular time and at a certain price.
9. a decline in the GDP that continues for six months or more.
11. anything provided by nature that affects the productive ability of a country.
16. an economic system that determines what, how, and for whom goods and services are produced by coordinating individual choices through arrangements that aid buying and selling goods and services.
17. an economic system in which a central planning authority determines what, how, and for whom goods and services are produced.
18. occurs when a country’s output exceeds its population growth.
19. an economic-political system in which the government controls the use of the country’s factors of production.
21. an economic-political system in which private citizens are free to go into business for themselves, to produce whatever they choose to produce, and to distribute what they produce as they please.
24. the ability of a good or service to satisfy a want.