| A | B |
|---|
| Needs | Required in order to live |
| Wants | Things that add comfort and pleasure in you life |
| Goods | Things that you can see and touch |
| Services | Activities that are consumed at the same time they are produced |
| Economic Resources | Also called factors of production, are the means through which goods and services are produced |
| Natural Resources | Raw materials produced by nature |
| Human Resources | The people who contribute physical and mental energy to the production process |
| Capital Resources | Tools, equipment, and buildings that are used to produce goods and services |
| Scarcity | Not having enough resources to satisfy the unlimited needs and wants |
| Economic decision making | The process of choosing which wants, among several options, will be satisfied |
| Tradeoff | The process of giving up something for gaining something else |
| Opportunity Cost | The value of the next-best alternative that you did not choose |
| Economic System | A nation's plan for answering the three economic questions |
| Command Economy | Economics system in which the government owns resources and dictates what is produced |
| Market Economy | Economics system where goods and services are owned and controlled by the people |
| Traditional Economy | Goods and services are produced the way it has always been done and centered on family |
| Marketplace | Anywhere that goods or services exchange hands |
| Capitalism | The freedom of consumption and production of goods and services |
| Consumer | Buys and uses goods and services. Decide what to buy, where to buy, from whom to buy, and what price they are willing to pay. |
| Producers | Individuals and organizations that determine what products and services will be available for sale. |
| Demand | The quantity of goods or services that consumers are willing and able to buy |
| Supply | The quantity of goods or services that businesses are willing and able to provide |
| Market Price | Point where supply and demand are equal |
