| A | B |
|---|
| Needs | Things that are required in order to live |
| Wants | Things that add comfort and pleasure to life |
| Goods | Things that you can see and touch |
| Services | Activities that are consumed at the same time they are produced |
| Economic Resources | The means through which goods and services are produced |
| Human Resources | The people who produce goods and services |
| Scarcity | Not having enough resources to satisfy every need |
| Economic decision-making | The process of choosing which wants, among several options, will be satisfied |
| Trade-Off | When you give up something to have something else |
| Opportunity Cost | The value of the alternative you did not choose |
| Economic Systems | A nation's plan for answering the three economic questions |
| Command Economy | The resources are controlled by the government |
| Traditional Economy | Goods and services are produced the way they have always been done |
| Mixed Economy | System that combines elements of the command and market economies |
| Capitalism | The private ownership of resources by individuals rather than the government |
| Consumer | Person who buys and uses goods and services |
| Producers | Individuals and organizations that determine what products and services will be availale for sale |
| Demand | Quantity of a good or service that consumers are willing and able to buy |
| Supply | The quantity of a good or service that businesses are willing and able to provide |
| Market Price | The point where supply and demand are equal |
| Budget deficit | A decrease in the general price level |
| Business Cycle | The movement of an economy from one condition to another and back again |
| Capital Projects | Spending by businesses for items such as land, buildings, and equipment |
| Gross Domestic Product | The total value of all final goods and services produced in a country in one year |
| Budget Surplus | Government spends less than it takes in |
| Depression | A phase marked by a long period of high unemployment, weak consumer sales, and business failures |
| Bonds | Represents debt for an organization |
| Personal Income | Salaries and wages as well as investment income and government payments to individuals |
| GDP per Capita | The GDP divided by the total population of a country. |
| Productivity | Production output in relation to a unit of input, such as a worker. |
| Recovery | The phase in which unemployment decreases, demand for goods and services increases, and GDP begins to rise. |
| Inflation: | An increase in the general price level |
| Stock | Represents ownership in a corporation |
| Budget Index | Government spends more than it takes in |
| Unemployment Rate | The portion of people in the labor force who are not working |
| Retail Sales | The sales of durable and nondurable goods bought by consumers |
| Prosperity | A period in which unemployment is low, businesses produce many goods and services, and wages are good. |
| Price Index | A number that compares prices in one year with prices in some earlier base year |
| Recession | A period in which demand, production, and GDP growth decrease and unemployment begins to rise |
| National Dept | The total amount owned by the federal government |
