| A | B |
|---|
| Economics | the study of how people meet their basic needs |
| Market Economy | system which is flexible and there is rapid change |
| Traditional Economy | system common in small islolated societies |
| Command Economy | system in which government planners make decisions |
| Supply | the amount of something available |
| Capital | money available to buy goods |
| Demand | The amount of desire or need there is for an item |
| Inflation | A rapid increase in the price of goods |
| Opportunity Cost | The economic cost of making choices. |
| Market | The consumers of goods or services |
| Goods and Services | Everything we produce or use in our lives. |
| Scarcity | A short supply or not enough of something to meet the need for it. |
| Choice | The decision to select one thing over another. |
| Consumer | Someone who uses goods or services. |
| Producer | Person who makes goods or provides services. |
| Individuals | make decisions in Market Economy |
| Mixed Economy | system with a blend of characteristics of several other systems |
| Economic Systems | methods used to help peole decide:What to produce? |
| Wants and needs | those goods and services necessary. |
| Wants | education, security, health care and entertainment |
| Needs | food, clothing and shelter |
| Natural Resources | land, water, trees, minerals |
| Human Resources | labor, talent, organizational skills |
| Capital Resources | tools, computers, machinery, financial investment |
| Information Resources | research, ideas |
| Investment Capital | Money available to invest in business |
