Chapter 19 Vocab

• economics-the field of study that tries to explain how people produce, distribute, and use goods and services
• eonomic system-country's way of using resources to provide goods an dservices that its people want and need
• free enterprise-means that individals or businesses may buy and sell and set prices with little government interference
• consumers-the people who buy and use goods and services
• producers-the companies or individuals who make or provide goods and services
• marketplace-where buying and selling occur
• gross domestic product-the total dollar value of all goods and services produced in the united states during a year
• inflation-when the average prices of goods and services rise sharply
• consumer fraud-dishonest business practices used by people who are trying to trick or cheat you.
• bait and switch-retailer advertises a bargain-the bait-to lure people into the store. when the customers arrive, the store is "out" of the item, then the sales person tries to sell you a similar product at a much higher price.
• warranty-is a garauntee that a product meets certain standards of quality.