The document defines key terms from chapters 19 and 10 of a civics and economics textbook, including goods, services, factors of production, natural resources, labor, capital, entrepreneur, GDP, standard of living, market, factor market, product market, productivity, specialization, division of labor, economic interdependence, capitalism, free enterprise, consumer sovereignty, private property rights, competition, profit, profit motive, voluntary exchange, and laissez-faire economics. Each term is given with a statement on similarity and difference but no further explanation.

1. Civics and Economics Vocabulary
Chapter 19 - Section One
Goods- products
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Services- work performed for someone else
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Factors of Production- resources necessary to produce goods and services
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Natural Resources- include actual surface land and water as well as fish, animals,
forests, and mineral deposits
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Labor- human resources
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Capital- the manufactured goods used to make other goods and services
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Entrepreneur- starts a new business, introduces new products, and improves processes
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Gross Domestic Product (GDP)- is the total value, in dollars, of all the final goods and
services produced in a country during a single year
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Standard of Living- the quality of life based on the possession of necessities and
luxuries that make life easier
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Chapter 10 - Section Two
Market- the free and willing exchange of goods and services between buyers and
sellers
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Tara Pawlyk Friday, May 17, 2013 8:19:57 AM ET 04:0c:ce:d3:10:88

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Factor Market- the markets where productive resources are bought and sold
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Product Market- markets where producers offer goods and ser- vices for sale
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Productivity- efficient use of resources
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Specialization- takes place when people, businesses, regions, or even countries
concentrate on goods or services that they can produce better than anyone else
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Division of Labor- is breaking down a job into small tasks performed by different workers
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Economic Interdependence- rely on others, and others rely on us, to provide goods and
services
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Capitalism- an economic system in which private citizens own and use the factors of
production in order to seek a profit
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Free Enterprise- competition is allowed to flourish with a minimum of government
interference
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Consumer Sovereignty- describe the consumer as the “king,” or ruler, of the market, the
one who determines what products will be produced
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Private Property Rights- we have the freedom to own and use, or dispose of, or throw
away, our own property as we choose as long as we do not interfere with the rights of
others
Tara Pawlyk Friday, May 17, 2013 8:19:57 AM ET 04:0c:ce:d3:10:88

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Competition- the struggle between buyers and sellers to get the best products at the
lowest prices
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Profit- amount of money left over after all the costs of production have been paid
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Profit Motive- the driving force that encourages individuals and organizations to improve
their material well-being
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Voluntary Exchange- act of buyers and sellers freely and willingly engaging in market
transactions
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Laissez-faire Economics- “to let alone.”
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Tara Pawlyk Friday, May 17, 2013 8:19:57 AM ET 04:0c:ce:d3:10:88