| A | B |
|---|
| Capital resources | Tools, equipment, buildings, and money that are used to produce goods and services |
| Command economy (Communist) | Economics system in which the government owns resources and dictates what is produced |
| Competitors | Businesses that offer the same goods to the same customers |
| Consumer | Buys and uses the goods and services |
| Decision making process | The six-step process of making economic decisions |
| Demand | Quantity of goods or services that consumers are willing and able to buy |
| Economic decision-making | Process of choosing which needs or wants will be satisfied |
| Economic resources | Means from which goods and services are produced. |
| Economic system | How the government answers the economic questions of: what, how, and for whom to produce |
| Economics | Study of the decisions made for production, distribution, and consumption of goods and services to satisfy needs and wants. |
| Free enterprise | Economic system in which freedom to consume and produce goods and services exists |
| Freedom of choice | Opportunity to make choices of goods and services and accept consequences of decisions |
| GoodsNonrenewable resources Resources that cannot be replaced (limited) | Items purchased to satisfy needs and wants |
| Human resources | People who contribute physical and mental energy to the production process |
| Market economy (Capitalist) | Goods and services are owned and controlled by the people |
| Market (equilibrium) price | The point where supply and demand are equal |
| Marketplace | Anywhere goods and services exchange hands |
| Mixed economy (Socialism) | Combines elements of the command and market economies |
| Natural resources | Raw materials produced by nature |
| Needs | Necessities required for living |
| Nonrenewable resources | Resources that cannot be replaced (limited) |
| Opportunity Cost | Value of the next-best alternative that is forgone to produce or obtain another product |
| Private Property | Right to purchase, use, and discard of things of value |
| Producers | Individuals and organizations that determine which goods and service will be available for consumption |
| Profit | Money left after selling goods and services and costs of operating a business have been paid |
| Renewable resources | Resources that can be replaced (unlimited) |
| Scarcity | Condition that exists when wants or needs exceed resources available |
| Self-regulating principles | Buying decision used by individuals, businesses, and governments in a market economy |
| Services | Activities that can be consumed at the time of purchase to satisfy needs and wants |
| Supply | Quantity of goods or services that business are willing and able to provide |
| Tradeoff | Process of giving up something for gaining something else |
| Traditional economy | Economic system in which decisions are based on customs and centered on family |
| Values | The beliefs and principles you consider important, correct, and desirable; the ideals in life that are important to you; principles by which a person lives |
| Wants | Goods that are purchased to add comfort or pleasure to life |
