| A | B |
|---|
| Economy | An area in which people make |
| Production | An activity designed to satisfy people’s wants. |
| Consumption | The using up of goods and services to satisfy wants. |
| Exchange | The change of ownership for resources and products. Usually for money. |
| Markets | Where the exchange of goods and services take place. |
| Factors of production | Sometimes called resources |
| Consumer goods | A good that is used to satisfy a consumer. |
| Capital | Human-made resources. |
| Public Goods | Goods and services provided by the government. |
| Merit Goods | Goods and services provided by the government because they think that people ought to have them |
| Income | Money gained from work or from owning assets (wealth). |
| Wealth | The accumulation of assets. |
| Land | Natural resources. |
| Labour | Human resources. |
| Investment | The creation of capital goods. |
