Tuesday, January 29, 2008

Chapter 19 Vocabulary

Economics- the field of study that tries to explain how people produce, distribute, and use goods and services.

Economic system- a country’s way of using resources to provide goods and services that its people want and need.

Free Enterprise- means that individuals or business may buy and sell and set prices with little government interference.

Consumers- people who buy and use goods and services.

Producers- companies or individuals who make or provide goods and services.

Market Place- where buying and selling occurs.

Gross Domestic Product-(GDP) the main indicator of the economy.

Inflation- occurs when average prices of goods and services rise sharply.

Consumer Fraud- dishonest business practices used by people who try to trick or cheat you.

Bait and switch-retail advertises a bargain-the bait-to lure people into the store.

Warranty- a guarantee that a product meets certain standards of quality.

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