Section 5.2 Vocabulary - The Market Economy

Front

the way goods and services are produced and consumed

Back

economy

Front

someone who acquires goods and services for his or her own personal use

Back

consumer

Front

someone who makes goods or offers services to others

Back

producer

Front

refers to the entire activity of buying and selling that takes place in the world

Back

market

Front

financial gain received by selling something for more than it cost to make it

Back

profit

Front

idea that consumers will want or need what producers are offering

Back

incentive

Front

producers battle over who can make the most profit

Back

competition

Front

process of developing new, better things

Back

innovation

Front

the amount of something that is available

Back

supply

Front

the number of consumers who want something

Back

demand