| A | B |
|---|
| goods | material items that are wanted or needed |
| services | what a person has someone else do for him--haircut, lessons |
| wants | what is desired, not needed |
| needs | what is necessary for survival--food, clothing, shelter |
| economics | science that explains how society uses scarce resources to |
| economic resources | everything it takes to make a product, including time, money, energy, workers |
| economic cycle | contraction, trough, expansion, peak |
| scarcity | not enough for everyone |
| opportunity cost | cost of giving up another alternative after you choose one |
| traditional economy | decisions made by what was always done before |
| command economy | all economic decisions made by the central gov't |
| market economy | capitalist system of individuals acting in their own self interest |
| mixed economy | mix of command and market economy |
| profit | earnings after all costs of production have been paid |
| entrepreneurship | business owner |
| deficit spending | spending more than you earn |
| Federal Reserve | central US bank which regulates other banks |
| CPI | measurement of the change in prices over time of a specific group of goods |
| unemployment rate | % of adult labor force wanting a job but not having one |
| GDP | total dollar value of final products and services produced in a year |
