lesson 8: economic institutions
Cards (17)
- system that society develops to satisfy the needs and wants, distribution and consumption of goods and services.
- these are resources needed to produce goods and services that include land, labor, capital, and entrepreneurship.
- natural resources such as soil, water, minerals, plants, animals, sunlight, and wind.
- called human resources, involves anyone who works to produce goods and services.
- manufactured good used in production process (tools, machinery, and factories)
- organizational skills and risk-taking attitude required to start a new business or develop a new product.
- exchange of goods and services of equal value between two trading partners.
- giving gifts without any expectation of immediate return.
- exchange of goods and services with the expectation that the equivalent value will be returned within a specific period of time.
- exchange of goods and services between equals in which the parties try to gain something more valuable than what they can give
- What example of reciprocity is giving birthday gifts to a friend?
- What example of reciprocity is selling surplus vegetables in a local market for money?
- What example of reciprocity is being respectful towards a boss in order to get a promotion?
- a form of exchange where goods and services are given to a centra authority and then relocated to create new patterns of distribution. (ex: the revenue collection of tax department)
- one-way payment of money for which no money, good, or service is received in exchange. (ex: computing gross national product)
- exchange of goods and services through a market. This is important in terms of measuring gross domestic product (GDP)
- an actual place where forces of demand and supply operate, and where buyers and sellers interact to trade goods, services, or contracts or instruments, for money or barter.