| A | B |
|---|
| economics | study of how human being coordinate their unlimited wants with their limited resources |
| consumer econmics | practical study of how the individual should act within a society to maximize their wants with limited resources |
| opportunity costs | the value of the next best alternative that is given up |
| recession | sight and extended declinei n income and rise in unemployment |
| depression | serious condition of high unemployment and severe drop in income |
| recovery | period of improving economic activity following a recession |
| prosperity | period of economic health when business are expandig and production and employment are high |
| demand | the amount of a product that people want to buy at various prices |
| supply | amount of a product that sellers will offer at various prices |
| law of demand | as price increases the quantity of a good purchased will decrease |
| law of supply | law that states more sellers will offer a product as price increases and vice versa |
| consumers | people who use goods and services to satisfy wants |
| business | organizations that produce goods/services with the intention of profit |
| factor market | consumers exchange their resources for money from businesses here |
| product market | consumers exchange money for finished goods/services with business firms here |
| mixed capitalism | type of economic system in America |
| profit | what remains after cost of production has been deducted from money made |
| profit motive | force that drives people to risk their resource to start a business |
| command economy | economy where government makes all the decisions |
| traditional economy | economic system where activity remains constant from generation to generation |
| market economy | individual private buyers and sellers determine production and consumption with no input from the government |
