Market Economy Vocabulary

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Economy is...

Back

the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.

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A consumer is...

Back

a person who purchases goods and services for personal use.

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A producer is...

Back

a person, company, or country that makes, grows, or supplies goods or commodities for sale.

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Demand is...

Back

an insistent and peremptory request, made as if by right.

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Profit is...

Back

a financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.

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Innovation is...

Back

make changes in something established, especially by introducing new methods, ideas, or products.

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An incentive is...

Back

a thing that motivates or encourages one to do something.

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Opportunity Cost is...

Back

the loss of potential gain from other alternatives when one alternative is chosen.

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Scarcity is...

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(especially of food, money, or some other resource) insufficient for the demand.

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Market Economy is...

Back

An economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses.