a person, company, or business that makes goods or provides services for consumers.

Example: when you make things to sell to other people you are acting as a producer.

objects of value acquired and used by consumers

Example: Cars, cakes, and computers are examples of goods.

actions or activities an individual, company, or business provides for someone else.

Example: Repairing cars is an example of a service.

moving goods and services directly to or near consumers

Example: Trucks, ships, and railroads are used for distribution

The process of making goods and services

Example: An assembly line is used in the production of automobiles.

Economic Systems

different ways that people use resources to make and exchange goods and services

Example: Bartering is the oldest economic system in the world

goods and services are traded, but money is rarely exchanged.

Example: A traditional economy is more likely to be in a remote community in which people grown their own food and make their own goods.

to trade

Example: He bartered and traded a pencil for a ruler in the class barter game.

What is produced and distributed is based on what consumers are willing to buy and the price they will pay.

Example: In a market economy, the price people are willing to sell goods for depends on the price people are willing to pay.

a central authority plans and controls what is produced and distributed

Example: In a command economy prices are set by the central authority

a combination of command and market economies

 Example: In coutries with mixed economies, the government may own some industries, while others belong to private owners.

a system for producing, distributing, and consuming goods and services.

Example: Banks, factories, and consumers all have a role in the economy.

the resources used to produce goods and services

Example: The factors of production are also called "productive resources."

One who takes risks, makes decisions, and organizes other productive resources to earn a profit

Example: An entrepreneur is often someone who starts a business

the abilities, talents, training, skills, and knowledge of people used in the production of goods or services.

Example: Human resources may use physical or mental efforts

productive resources that occur in nature.

Example: Natural resources include water, soil, trees, and minerals.

machinery, tools, factories, stores, vehicles, etc. made by humans that are used to produce goods or services.

Example: Tractors used to harvest crops are capital resources.

data that helps to show the economic condition of a country.

Example: The Gross Domestic Product is an example of an economic indicator

the total value of all the goods and services produced in an economy in a given year.

Example: The Gross Domestic Product is an example of an economic indicator

the amount of money people make in a country, divided by the number of people in the country.

Example: In wealthy countries the Per Capita Income is high.

the average life span of a newborn; life expectancy is an indicator of the overall health of a country.

Example: The higher the life expectancy, the better economic shape a country is in.

the number of deaths of infants, one year or younger

Example: The infant mortality rate has continued to decline over the past several years.

the ability to read and write

Example: Literacy is important because it affects people's ability to prepare for and hold jobs.

countries with less productive economies and a lower quality of life.

Example: Almost two-thirds of the people in the world live in developing countries

Countries with strong economies and a high quality of life.

Example: Developed countries like the United States and Germany have a higher per capita GDP and high levels of industrialization.