| A | B |
|---|
| interdependence | sharing a common set of principles to others |
| consumer | any individual or household that uses goods/services |
| exchange | trade |
| market | public place where buyers and sellers trade and make transactions |
| wants | something that is desired, not needed |
| circular flow model | shows flow between consumers and business and government |
| product market | used to exchange final good or service |
| household | consuming population of an economy |
| factor market | market where factors of production are bought and sold |
| trade | exchange of goods or services |
| incentive | a benefit that motivates a decision or action |
| inflation | persistent increase in the average price level in the economy |
| innovation | useful application of new inventions and discoveries |
| investment | sacrifice of current benefits or rewards to pursue an activity with expectations of greater future benefits or rewards |
| obsolete | out of date; no longer useful |
