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geography lesson 6 vocab MORGAN
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the additional cost incurred in the production of one more unit of a good or service
Marginal cost
act of concentrating on a limited good/service
specialization
the cost of hat you give up by purchasing something else
opportunity cost
arrangement in which a buyer can borrow to purchase something and pay later
credit
ability to produce a good or service
supply
people or business that makes a good/service
producer
Money subtracted after paying for production
profit
economic system where the central government makes all decisions
command economy
economic in which individual consumers and producers make economic decisions
Market economy
people or business that buy a good/service
consumer
study of how people meet wants and needs
economics
money earned by selling goods/services
revenue
Combination of command and market economies
Mixed economy
A plan to keep track of income and spending
Budget
Economic traditions based on a group, culture/value
Traditional economy
general increase of price
Inflation
what is a desire for a good or service
demand


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