| A | B |
|---|
| Land, Labor, Captial and Entrepreneur | Factors of Production |
| goods used to produce other goods; financial/machines | Capital |
| the act of buying or using goods and services | Consumption |
| the benefit given up when scarce resources are used for one purpose instead of another | Opportunity Cost |
| limited resources | Scarcity |
| things that are needed for survival; food, water, clothing & shelter | Needs |
| things that people want that are not necessary for survival | Wants |
| human effort | Labor |
| any good or item from nature; natural resources | Land |
| goods to make other goods and services | Capital Goods |
| a situation where you make a compromise between two things, or where you exchange all or part of one thing for another. | Trade offs |
| the amount an item produced | Quantity |
| application of science to commerce or industry | Technology |
| continue to do things by custom and habit | Traditional Economy |
| the government directs production and decides who receives resources | Command Economy |
| private individuals own the factors of production and are free to make their own choices about production, distribution and consumption | Market Economy |
| the amount of money left over after the cost of resources has been determined | Profit |
| the amount of money that a person places into a company with the hope of greater return | Invest |
| individuals undertake economic activities with little or no control by the government | Free Enterprise |
| another name of market economy; economy where people decide how to use their resources to produce goods and services | Capitalism |
| Has aspects of both Market Economy and Command Economy | Mixed Economy |
| an economy where the government owns/control many industries | Socialism |
| father of socialism, German Revolutionary, wrote..."Das Kapital".. | Karl Marx |
| a place where both buyer and seller meet | Market |
| no goverment interference in the economy; let it be | Laissez-Faire |
