| A | B |
|---|
| Scientific study of how governments, households or businesses deal with production, distribution and consumption of goods and services | economics |
| Study of economies as a whole; the “Big Picture” | macroeconomics |
| Study of individual economic units, such as businesses and households | microeconomics |
| tangible items purchased to fulfill a desire | goods |
| intangible tasks performed in exchange for something of value, such as money | services |
| the desire to possess goods and services | wants |
| necessary for survival | needs |
| four factors of production | land, labor, capital, management |
| The good or service you give up when you choose another good or service | opportunity cost |
| Turn economic resources into factors of production; Produce goods & services to sell to distributors; and Pay wages & benefits to consumers for labor used in production | producers |
| Buy goods & services from producers; Sell goods & services to consumers | distributors |
| Buy goods & services from distributors; Work for producers to earn wages & benefits | consumers |
| The four stages of the business cycle | prosperity, recession, depression, and recovery |
| Work for producers to earn wages & benefits at a given time is | supply |
| the quantity of goods & services buyers or consumers are willing to purchase at various prices at a given time is | demand |
| Increased Prices = Decreased Demand; Decreased Prices = Increased Demand | Law of Demand |
| Increased Prices = Increased Supply; Decreased Prices = Decreased Supply | Law of Supply |
| three question related to production | what, how, and who |
