| A | B |
|---|
| Economics | producing and using goods and services to satisfy human wants |
| Economic wants | desire for scarce material goods and services |
| Non-economic wants | desires for nonmaterial things |
| Utility | ability of a good to satisfy a want |
| Producer | anyone who creates utility |
| Factors of production | land, labor, capital goods & entreprenuership |
| Natural resources | provided by nature |
| Labor | human effort that goes into the production of goods |
| Human capital | accumulated knowledge and skills of humans |
| Capital goods | buildings, tools, machines, and other equipment |
| Capital formation | buildings and equipment needed to produce consumer goods and services |
| Consumer goods & services | goods that directly satisfy people's economic wants |
| Economic system | an organized way for a country to decide how to use its produce |
| Market Economy | individual buying habits in the marketplace determines what will be produced |
| Command Economy | government decides what will be produced. |
| Mixed Economy | uses aspects of market and command economy |
| Privatization | transfer of authority to provide goods from government to individuals |
| Capitalism | system in which private citizens are free to go into business |
| Socialism | government controls the use of the country's factors of production |
| Communism | all or almost all of the nation's factors are controlled by the government |
| Private Property | items of value that individual have the right to own |
| Profit | amount sold minus cost of goods produced |
| Demand | number of products that will be bought in a given time at a given price |
| Supply | number of like products that will be offered for sale |
| Competition | rivalry among sellers for consumer dollars |
| Economic growth | country's output exceeds the population growth |
| Consumer Price Index (CPI) | what is happending in general to prices in the country |
| Recession | a decline in the GDP that continues for 6 months or more |
| Inflation | the rapid rise in prices caused by an inadequate supply of good and services |
| Business cycles | pattern of irregular but repeated expansion and contraction of the GDP |
| Depression | a long and severe drop in the GDP |
