| A | B |
|---|
| substitutes | goods used in place of one another |
| competition & self-interest | forces in free market economies |
| scarcity | when there are not enough resources to satisfy wants |
| specialization | when a company focuses on specific tasks |
| Communism | when the government controlls economics & politics |
| factors of production or productive resources | resources used to make goods and services |
| equilibrium | when qualtity supplied & quantity demanded are equal |
| natural monopoly | a market that runs most efficiently with one large firm providing all output |
| guns or butter | when a gov't chooses between military & consumers goods |
| subsidy | government payment to support a business |
| liability | legal obligation to pay debts |
| treasury bonds | safest type of bonds with low risk |
| Federal Reserve System | Sort of a central bank with the power to lend $ to other banks |
| Principles of free enterprise | Private property rights, profits, free contract, & competition |
| complements | goods that are bought & used together |
