| A | B |
|---|
| Profit | money left from sales after all of the costs of operating a business have been paid |
| Competition | the rivalry among businesses to sell their goods and services. |
| Market (equilibrium) price | the point where supply and demand are equal. |
| Demand | quantity of goods or services that consumers are willing and able to buy. |
| Economic resources | the means through which goods and services are produced. |
| Natural resources | raw materials produced by nature |
| Human resources | people who contribute physical and mental energy to the production process |
| Capital resources | the tools, equipment, and buildings that are used to produce goods and services. |
| Scarcity | not having enough resources to satisfy the unlimited needs and wants. |
| Tradeoff | process of giving up something for gaining something else |
| Opportunity cost | the value of the next-best alternative that you did not choose. |
| Economic system | a nation’s plan for answering the three economic questions. |
| command, or communist, economy | an economics system in which the government owns resources and dictates what is produced |
| market economy | an economics system where goods and services are owned and controlled by the people. |
| marketplace | anywhere that goods or services exchange hands |
| traditional economy | goods and services are produced the way it has always been done (customs) and centered on family |
| mixed economy | combines the elements of the command and market economies. |
| Private property | can own, use, or dispose of things of value. |
| Capitalism | the freedom of consumption and production of goods and services. |
| Freedom of choice | can make decisions independently and must accept consequences of those decisions |
| Supply | the quantity of goods or services that businesses are willing and able to provide |
