| A | B |
|---|
| incentive | a factor that motivates behavior |
| profit | revenue minus costs |
| loss | losing money |
| scarcity | limited resources |
| goods | actual products you can see and touch |
| services | work performed for others |
| opportunity cost | what is given up when you make a choice |
| barter | trade without money |
| risk | exposure to possibly losing something |
| supply | amount of good available for purchase |
| demand | desire and ability to purchase something |
| price | how much is charged for good/service |
| natural resources | resources from nature |
| human resources | workers |
| capital resources | money, building, tools, and materials to run a business |
| expenses | money that is spent |
| specialization | to train in one specific area |
| market economy/capitalism | an economic system where there is competition and prices are determined by supply and demand |
| competition | two or more companies competing for the same business |
| income | money that is received |
| budget | an estimate of expected income and expenses |
