| A | B |
|---|
| scarcity | when people's needs and wants are unlimited and the resources to produce the goods and services to meet those needs and wants are limited. |
| need | the basics, food, water, shelter |
| want | extras, "icing on the cake", not really needed |
| command economy | government determines what, how, and for whom products and services are produced |
| market economy | individuals determine what products and services are produced |
| productivity | the level of output that an industry or company gets from each worker or each unit of input into its products and services |
| supply | how much of a good or service a producer is willling to produce at different prices |
| demand | an individual's need or desire for a product or service at a given price |
| equilibrium | the price at which supply equals demand |
| monopoly | when a company controls all of a market |
| function of business-creates or obtains products | production |
| function of business-4 activities together making product available to consumer | marketing |
| function of business-solving problems with employees and customers | management |
| function of business-budgeting the money for company | finance |
| fixed costs | costs that must be paid regardless of how much of a good or service is produced |
| variable costs | these go up and down, depending on the quantity of good produced |
| marginal benefit | measures the advantages of producing one additional unit of a good or service |
| marginal cost | measures the disadvantages of producing one additional unit of a good or service |
| opportunity cost | the cost of choosing one opportunity or investment over another |
| public good | a good from which everyone receives benefits, not just the individual consuming the good |
