Exploring Economics Part 2 Vocabulary

Trading of objects or ideas

• exchange

• income

• price

• incentive

The money people earn by working

• price

• income

• exchange

• incentive

The pattern in which goods, services, and resources flow in the marketplace.

• specialization

• division of labor

• substitute goods

• circular flow

The amount paid for a good or service

• exchange

• income

• price

• incentive

A good used in place of another good

• exchange

• division of labor

• substitute goods

• import

Rewards or penalties used to cause people to act in certain ways

• incentive

• import

• export

• productivity

When people make the goods they are best able to produce with the resources available to them

• exchange

• price

• specialization

• export

Assigning different steps in building a good to different people

• division of labor

• substitute goods

• exchange

• specilization

How many goods and services are produced

• productivity

• import

• export

• price

A product sent to another country to be sold

• import

• export

• price

• income