| A | B |
|---|
| the time, energy, knowledge and skills needed to do a certain job | labor |
| anything produced in an economy that is used to produce other goods and services | capital |
| the resources that are limited compared with the wants that people have | scarcity |
| an economy in which the basic economic decisions are made according to long-established ways of behaving | traditional economy |
| an economic system in which private individuals make their own choices about production and consumption | market economy |
| the difference between what it costs to produce something and the price the buyer pays for it | profit |
| a system in which individuals undertake economic activities with little or no control by the government | free enterprise |
| another name for market economy | capitalism |
| a repeated series of "ups" of growth and "downs" of recession | business cycle |
| a regulation of the money supply by the federal reserve | monetary policy |
| a government's decision about the amount of money it spends and collects in taxes | fiscal policy |
| a general rise in the prices of goods and services throughout the economy | inflation |
| a slowdown of economic activity and production | recession |
| a severe economic recession | depression |
| a tax in which people who earn more money pay more taxes | progressive income tax |
| federal program that provides monthly payments to people who are retired or unable to work | social security |
| the cost of the next best alternative use of time and money when choosing to do one thing rather than another | opportunity cost |
| government program that provides health care for the aged or those needing financial assistance | medicare/medicaid |
| an economic system in which the major decisions are made by the central government | command economy |
| the money, people, and materials available to accomplish a community's goals | resources |
| a person who starts a new business | entrepreneur |
| amounts of a product that producers are willing to offer at different prices | supply |
| the amounts of a product or service buyers are willing abe able to buy at different prices | demand |
| a person who uses, or consumes, goods and services to satisfy his or her wants | consumer |
| the alternative you face if you decide to do one thing rather than another | trade-off |
| reduction in the general prices in an economy | deflation |
| tax rate decreases as the amount to which the rate is applied increases | regressive tax |
| economic model showing the relationship between money income and spending for the economy as a whole | circular flow |
| an tax other than property tax | excise tax |
| the central bank of the US | Federal Reserve |
| the number and kinds of goods and services people can have | standard of living |
| the total dollar value of all final goods and services produced and sold in the country in a year | GDP (gross domestic product) |
| the lowest hourly, daily, or monthly wage that employers may legally pay to employees or workers | minimum wage |
| governmental provision of economic assistance to persons in need | welfare |
| measures the value of goods and services that the country's citizens produced regardless of their location | GNP (gross national product_ |
| a type of productive resource | land |
| Anything that any business uses to add value | productive resources |
