| A | B |
|---|
| economics | the study of how people make choices to get what they need and want |
| market economy | decisions made by private citizens, profit is a major goal |
| command economy | Decisions made by central planners(government) |
| producers | people who make goods |
| consumers | people who purchase goods or services |
| barter | to trade |
| interdependence | relying upon one another for desired goods or services |
| natural resources | trees, land, minerals and water are some examples |
| opportunity cost | the value of the item you decided to give up for something else |
| capital resources | buildings and equipment used to produce goods or services |
| goods and services | everything bought and sold |
| labor force/human resources | the people who produce goods and services |
| scarcity | not enough of something, causing choices to need to be made. |
| needs | items necessary to live |
| Economists | study the production, distribution and consumption of goods and services |
| production possibility frontier/curve | A model used to show tradeoffs and opportunity costs |
| tradeoff | a good sacrificed in order to get something else |
| Reason for scarcity | Resources are limited, but wants are unlimited |
| traditional economy | Produce enough to live, follow parental example, little growth |
| economic model | a simplified representation of an economic concept |
| Economics- another definition | the studyof factors that determine the production, distribution and consumption of goods and services. |
| globalization | the flow of money, labor, materials, technology and ideas throughout the world |
| goods | objects that can satisfy one's needs or wants |
| Services | they cannot be touched, smelled, tasted, they are actions people carry out for others |
| free trade | A policy followed by in which countries' governments do not restrict imports from, or exports to, other countries |
| fair trade | A movement to help developing countries achieve better trading conditions, higher prices for exports, higher standard of living, environmental standards |
| developing countries | nation with a less developed industrial base |
| developed country | industrialized country, it has advanced technological infrastructure |
| factors of production | resources used to produce goods and services |
