| A | B |
|---|
| resources | land, labor, capital, and entrepreneuship used in the production of goods and services |
| services | non physical item, providing help for users |
| goods | things we buy and sell that can be made or grown |
| wants | unlimited list of wishes of an individual |
| scarcity | insufficient supply or amount of something needed |
| natural resources | materials that occur in nature |
| human resources | labor used in the production process |
| capital resources | machinery, buildings and equipment |
| entrepreneurship | a person who creates or starts a new project, opportunity , or venture |
| choice | selecting one item over another |
| alternatives | different courses of action to achieve an objective |
| opportunity cost | what is lost or given up when you choose one thing over another |
| price | the amount of money needed to purchase something |
| supply | the amount of goods and services available |
| demand | the ability and desire to purchase goods and services |
| incentives | anything that motivates a buyer |
| consumption | using economic goods to satisy a need or to produce an item |
| free market | market where all decisions regarding transfer of money, goods and services are VOLUNTARY |
| private ownership | owned by an individual |
| property | anything owned by an individual, group etc. |
| profit | net income, the amount made after all expenses |
| competition | businesses compete to gain customers |
| consumer sovereignty | consumers determine what is produced, quality and quantity |
| command economy | all economic decisions are state owned |
| mixed economy | most production is done by private businesses and some state owned business |
| private sector | non government business |
| means of production | the raw materials, lands, and resources that are used in production |
| earnings | income, money received |
| expenses | costs incurred |
| rivalry | competition |
