| A | B |
|---|
| Scarcity | Conflict between unlimited wants and limited resources |
| Wants | Things that are not necessary for survival but that add comfort and pleasure to our lives. |
| Needs | Things that are necessary for survivial such as food, clothing and shelter |
| Goods | Things you can see and touch |
| Services | Things that satisfy our wants through the efforts of other people or equipment. |
| Economic Resources | aka factors of production - Means through which goods and services are produced |
| Opportunity Cost | What you give up when you make one choice over another; value of the next best alternative that you did not choose |
| Values | The beliefs and principles you consider correct, important and desirable. |
| Goals | something specific that you want to achieve |
| Natural resources | Raw materials supplied by nature that come from the earth, the water, or the air and are used to produce goods |
| renewable resources | resources that can be replaced. |
| Nonrenewable resources | resources that cannot be replaced. |
| human resources | People who contribute physical and mental energy to the production process |
| capital resources | tools, equipment and buildings used to produce goods and services. |
| entrepreneurial resources | the initiative to combine natural, human and capital resources to produce goods and services. |
| Traditionalism | economy in which people do things the way they've always done them and centered on the family |
| Communism or Command | An economy in which the government owns resources and dictates what is produced |
| Mixed or Socialist | Combines elements of the command and mixed economy. An economic system in which the government owns major industries but allows for private ownership of other businesses. |
| market | An economic system where goods and services are owned and controlled by the people |
| Free Enterprise System | A system in which most economic resources are privately owned and decisions about production and distribution are largely made by voluntary exchange in the marketplace |
| Worker productivity | The quantity of a good that an average worker can produce in an hour. |
| Standard of living | a measure of how well people in a country live |
| Profit | Sales minus expenses |
| Consumer | person who purchases and uses goods and services |
| Economic Decision Making | Process of choosing which want will be satisfied |
| Tradeoff | Process of giving up something for gaining something else |
| Capitalism | allows the freedom of consumption and production of goods and sevices |
| Marketplace | anywhere that goods and services exchange hands |
| profit | money left from sales after all of the costs of operating a business have been paid |
| competition | rivalry among businesses to sell their goods and services |
| consumers | buys and uses goods and services |
| producers | individuals and organizations that determine what products and serices will be available for sale |
| demand | quantity of goods and services that consumers are willing and able to buy. |
| supply | refers to the quantity of goods or services that businesses or producers are willing and able to provide |
