| A | B |
|---|
| Economics | the study of how things are bought & sold |
| supply | the amount of a good producers are willing to sell |
| demand | the amount of a good consumers are willing to buy |
| traditional economy | economy is based on what has been done in the past |
| command economy | the government controls wages and businesses |
| opportunity cost | what is given up when a choice is made |
| free market | free enterprise, consumer sovereignty |
| mixed economy | the economy of most of the world |
| factors of production | land, labor, capital, entrepreneurs |
| incentives | what motivates a person to buy |
| entrepreneur | the person who takes the risks to start a business |
| equillibrium price | the price where demand and supply meet |
| producers | those who make goods & services |
| consumers | those who buy goods and services |
| people used to make a product | labor |
