| A | B |
|---|
| Scarcity | Conflict between unlimited wants and limited resources |
| Wants | Things that are not necessary for survival but that add comfort and pleasure to our lives. |
| Needs | Things that are necessary for survivial such as food, clothing and shelter |
| Goods | Things you can see and touch |
| Services | Things that satisfy our wants through the efforts of other people or equipment. |
| Resources | Means through which goods and services are produced. |
| Opportunity Cost | What you give up when you make one choice over another |
| Values | The beliefs and principles you consider correct, important and desirable. |
| Goals | something specific that you want to achieve |
| Natural resources | Raw materials supplied by nature that come from the earth, the water, or the air and are used to produce goods |
| renewable resources | resources that can be replaced. |
| Nonrenewable resources | resources that cannot be replaced. |
| human resources | People who contribute physical and mental energy to the production process |
| capital resources | tools, equipment and buildings used to produce goods and services. |
| entrepreneurial resources | the initiative to combine natural, human and capital resources to produce goods and services. |
| Traditionalism | economy in which people do things the way they've always done them |
| Communism | An economy in which the government makes ALL decisions concerning the three important economic questions. |
| Socialism | An economic system in which the government owns major industries but allows for private ownership of other businesses. |
| Capitalism | An economic system where the basic economic decisions are based on the actions of individual people and businesses participating in many different markets. |
| Free Enterprise System | A system in which most economic resources are privately owned and decisions about production and distribution are largely made by voluntary exchange in the marketplace |
| Worker productivity | The quantity of a good that an average worker can produce in an hour. |
| Standard of living | a measure of how well people in a country live |
| Profit | Sales minus expenses |
| Consumer | person who purchases and uses goods and services |
