| A | B |
|---|
| business | provides products to earn profit |
| profits | difference between revenues and expenses |
| revenues | inflows into an organization from the sale of goods and services |
| expenses | outflows incurred from the production of goods and services |
| economic system | a system for allocating resources among citizens |
| factors of productions | resources used in the production of goods and services |
| natural resources | a factor of production-materials supplied by nature |
| labor | a factor of production-human resources |
| capital | a factor of production-funds needed to create and operate a business |
| planned economy | economy that relies on centralized government decision making about resources |
| market economy | economy in which individuals control production and allocation of resources |
| industry | a pool of businesses in the same line of work |
| firm | one business |
| privatization | converting government owned enterprises to privately owned enterprises |
| socialism | a form of a planned economy |
| capitalism | a form of a market economy |
