| A | B |
|---|
| Economics | the body of knowledge that relates to producing and using goods and services that satisfy human wants |
| Economic wants | the desire for scarce material goods and services |
| Noneconomic wants | desired wants that are not scarce |
| Utility | the ability of a good or service to satisfy a want |
| Producer | anyone who aids in creating utility |
| Factors of production | land, labor, capital goods, and management-the four basic resources that are combined to create useful goods and services |
| Natural resources | Anything provided by nature that affects the productive ability of a country |
| Labor | the human effort, either physical or mental, that goes into the production of goods and services |
| Human capital | the accumulated knowledge and skills of human beings-the told value of each persons education and acquired skills |
| Capital goods | buildings, tools, machines, and other equipment that are used to produce other goods but do not directly satisfy human wants |
| Capital formation | the production of capital goods |
| Consumer goods and services | goods and services that satisfy people's economic wants directly |
| Market economy | an economic system that says what, how, and for whom goods and services are produced by coordinating individual choices through arrangements that aid buying and selling goods and services |
| Command economy | an economic system that says what, how, and for whom goods and services are produced is decided by a central planning authority |
| Mixed economy | economic system where market and a command economy are blended together to make decisions about what, how, and for whom goods and services are produced |
| Capitalism | an economic political system in which private citizens are free to go into business for themselves, to produce whatever they choose to produce, and to distribute what they produce as they please |
| Socialism | an economic political system in which the government controls and regulates the means of production |
| Communism | forced socialism where all or almost all the productive resources of a nation are owned by the government |
| Demand | refers to the number of similar products that will be bought at a given time at a given price |
| Supply | refers to the number of similar products that will be offered for sale at a particular time at a particular price |
| Competition | rivalry among sellers for consumers dollars |
| Economic Growth | occurs when a countrys output exceeds its population growth |
| Recession | a decline in the GDP that continues for six months or more |
| Inflation | a rapid rise in prices caused by an inadequate supply of goods and services |
| Business Cycles | a patter of irregular but repeated expansion and contraction of the GDP |
| Depression | a long and severe drop in the GDP |
