| A | B |
|---|
| Scarcity | inability to satisfy all needs and wants at the same time |
| Resources | things used to produce goods and services |
| Choice | selecting an item or action from a set of possible alternatives |
| Opportunity Cost | what is given up when a choice is made-the highest valued alternative |
| Price | amount of money exchanged for a good or service |
| Incentive | things that motivate people to buy |
| Supply | amount of a good or service that producers are willing and able to sell |
| Demand | amount of a good or service that consumers are willing and able to buy |
| Production | combining resources to make goods or provide services |
| Human resource | people |
| Natural Resource | trees |
| Capital Resource | ribbons |
| Consumption | using goods and services |
| Command Economy | Complete government control, no Consumer Choice |
| Mixed Economy | Consumer choice and some Government control |
| Market Economy | Total Consumer control, no Government Control |
| Profit | earnings after expenses have been paid |
| Competition | rivalry between producers/sellers of a good or service results in better quality goods and services at a lower price |
| Consumer sovereignty | consumers determine through purchases, what goods and services will be produced |
| Proprietorship | form of business with own owner |
| Partnership | form of business with two or more owners who share risk |
| Corporation | form of business that is authorized by law to act as a legal person regardless of the number of owners |
| Entrepreneur | person who takes a risk to produce goods and services in search of profit |
