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Ancient Greece
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Ancient Greece

Not having enough of something. scarcity. Rewards or penalties used to encourage people to behave in predictable ways. incentives. Workers and their skills. human resources. When the production of a job is broken down into many small jobs, each done by a different worker. division of labor. when you make a choice, this is the second thing that you wanted the most. opportunity cost. The study of how individuals and societies use their scarce resources to get goods and services. economics. The kind of economic system that we have in our country. the "three big questions" are answered through the interaction of producers and consumers. The seller expects to charge as much as the buyer is willing to pay without looking for another seller and a less expensive price. market economy. The government decides the answers to the "three big questions". They decide what will be produced, how it will be produced, and what the price will be. command economy. The "three big questions" are answered by tradition or custom. People produce what they have always produced in a way that they have always produced it. traditional economy. When individuals, regions, and companies produce certain kinds of goods or services. specialization. Someone who makes a good or provides a service. producer. The amount of a product or service that is available for consumers to buy. supply. The consumers' willingness and ability to purchase a good or a service. demand. Someone who buys goods or services. consumer. When businesses sell the same good or provide the same service. competition. The three questions that economists ask. Who will it be produced for?. When the price of a product decreases, the demand for the product? increases. Competition can lead to a _________ in prices. decrease. As the demand for a product increases, the prices may increase. As the supply for a product _________, the prices may go down. increases. Specialization _________ the amount of products able to be produced. speeds up

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