| A | B |
|---|
| Capitalism | An economic system in which most economic resources are privately owned and decisions are largely made by free exchange in the marketplace |
| Communism | An economy in which the government makes ALL decisions concerning the three important economic questions |
| Competition | The rivalry among businesses to sell their goods and services to buyers. |
| Demand | The quantity of a product or service that consumers are willing and able to buy at a particular price |
| Economic System | a nation’s plan for answering the key economic question |
| Goals (short-term, intermediate, long-term) | Objectives or accomplishments that you plan to achieve in a specific amount of time |
| Short-term goals | are goals you expect to reach within a few days or a week |
| Intermediate goals | are goals you expect to reach in the next few months or years. |
| Long-term goals | are goals you expect to reach over a period of several years. |
| Labor productivity | The quantity of a good an average worker produces in one hour |
| Opportunity costs | What you give up when you make one choice over another |
| Profit | Money left from sales after subtracting the cost of operating the business |
| Socialism | An economic system in which the government owns major industries (like railroad systems, steel, and iron), but allows for private ownership of other businesses |
| Standard of living | A measure of how well people in a country live; the quality and quantity of wants and needs that are satisfied; it is the way you live as measured by what you can afford; determined by your choice of career |
| Supply | The quantity of a product or service that businesses are willing and able to provide at a particular price |
| Traditionalism | An economy in which people do things the way they have always been done |
