| A | B |
|---|
| Capitalism | A system in which people make their own decisions about how to save resources as capital and how to use their capital to produce goods and provide services. |
| Quantity | Amount |
| Free Enterprise | Refers to the system in which individuals in a market economy are free to undertake economic activities with little or no control by the government. |
| Command Economy | The government or a central authority owns or controls the factors of productio and makes the basic economic decisions. |
| Factors of Production | The resources people have for producing goods and services to satisfy their wants. |
| Profit | The difference between total cost of production and the total revenues received from buyers. |
| Mixed Economy | One system that is a mixture of the three basic economic systems. |
| Consumption | The act of buying or using goods and services. |
| Traditional Economy | The basic economic decisions are made according to long established patterns of behavior that are unlikely to change. |
| Scarcity | Resources are always limited compared with the number and variety of wants people have. |
| Market Economy | A system in which private individuals own the factors of production and are free to make their own choices about production, distribution, and consumption. |
| Opportunity Cost | The benefit given up when scarce resources are used for one purpose instead of another. |
| Invest | To use money to help a business get started or grow, with the hope that the business will earn a profit that you can share. |
| Technology | The practical applicartion of science to commerce or industry. |
| Capital | Anything produced in an econlmy that is saved to be used to be used with other goods and services. |
| Distribution | The process by which goods and services are made available to the people who want them. |
