| A | B |
|---|
| economics | the study of producing and using things that humans want |
| economic wants | desire for scarce material goods and services |
| non-economic wants | desires for non-material things |
| utility | ability of a good or service to satisfy a want |
| producer | anyone who creates a utility |
| factors of production | the four basic resources |
| natural resources | anything provided by nature |
| human capital | accumulated knowledge and skills of human beings |
| labor | human effort that goes into production |
| capital goods | buildings, tools, machines |
| capital formation | production of capital goods |
| economic system | organized way for a country to decide how to use its productive resources |
| market economy | economic system where individual's buying decisions affect what is produced |
| command economy | economic system where a country's gov't determines business |
| mixed economy | includes both market and command economic systems |
| capitalism | economic political system where private citizens are free to do business |
| privatization | transfer of authority to provide a good or service from gov't to individuals |
| socialism | economic system where the gov't controls factors of production |
| communism | extreme socialsim |
| private property | items of value that individuals have the right to have |
| profit | the cost of production subtracted from the amount received from the customer |
| demand | the number of products that will be bought at a time |
| supply | the number of similar products offered for sale at one time |
| competition | rivalry among sellers for consumer's dollars |
| economic growth | occurs when output exceeds growth |
| CPI | tells what's happening to prices in country |
| recession | decline in the GDP for 6 months or more |
| inflation | rapid rise in prices |
| business cycles | patterns of expansion and contraction in GDP |
| depression | long and sever drop in GDP |
