| A | B |
|---|
| Something that is necessary for survival | need |
| Something not necessary for survival, but adds comfort and pleasure to our lives | want |
| Things you can see and touch | good |
| Our wants that are satisfied through the efforts of other people or by equipment | services |
| The conflict of unlimited wants and limited resources | scarcity |
| A nation’s plan for answering the key economic questions | Economic System |
| Goods are produced the way they have always been produced | Custom-based Economy |
| Resources are owned and controlled by the government. | Planned (Direct) Economy |
| The three economic questions are answered by individuals through the buying and selling activities in the marketplace. | Market Economy |
| Any place where buyers and sellers exchange goods, services, and some form of money | marketplace |
| Trading goods or services without exchanging money | bartering |
| The desire to work hard and be creative to earn a higher profit | profit motive |
| The quantity of a product or service that consumers are willing and able to buy at a particular price | demand |
| The quantity of a product or service that businesses are willing and able to provide at a particular price | supply |
| The total dollar value of all final goods and services produced in a country during one year | GDP |
| A sustained increase in the general level of prices | inflation |
| A decrease in the general level of prices | deflation |
