| A | B |
|---|
| scarcity | lack of resources |
| factors of production | economic resources necessary to produce a society's goods ans services. |
| natural resources | raw materials from nature that are used to produce goods. Trees, water, grains, etc. |
| labor resources | people who make the goods and services for which they are paid |
| capital resources | things used to produce goods and services such as buildings |
| entrepreneurial resources | used by the people who recognize opportunities and start businesses. |
| entrepreneurship | process of recognizing a business opportunity, testing it in the market, and gathering the resources necessary to start and run a business. |
| entrepreneur | indivdual who undertakes the creation, organization, and ownership of a business |
| economics | study of how indivduals and groups of indivduals strive to satisfy there needs and wants by making choices. |
| Economic systems | methods societies use to distribute resources |
| market economy | economic system in which the people own the resources and make the decisions capitalism |
| price | the amount of money given or asked for when goods and services are bought or sold |
| supply | amount of goods or services producers are willing to produce |
| demand | amount or quality of goods and services that consumers are willing to buy at various prices |
| equiolibrium price | point at which the quantity demanded and the quantity supplied meet |
| command economy | economic system which the government owns the resources and makes the decisions. socialism |
| mixed economy | economy that contains both people and government owning resources and making decisions. US has this system |
| traditional economy | occupaton is passed down from one generation to the next |
