Economics -Part 2

trading of objects or ideas

• circular flow

• income

• exchange

• price

the money people earn by working

• profit

• income

• demand

• supply

the pattern in which goods, services, and resources flow in the market place

• price

• circular flow

• substitute goods

• exchange

the amount paid for a good or service

• demand

• specialization

• incentive

• price

a good used in place of another

• substitute goods

• price

• exchange

• income

how many goods and services are produced

• incentive

• productivity

• export

• division of labor

a product sent to another country to be sold

• circular flow

• income

• price

• export

rewards or penalties used to cause people to act a certain way

• export

• incentive

• curricular flow

• division of labor

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

• incentive

• specialization

• export

• productivity

assigning different steps in building a good to different people

• division of labor

• incentive

• productivity

• income