| A | B |
|---|
| Economics is the study of | Scarcity |
| Goods | Physical Objects, i.e. shirt/shoes |
| Service | Actions Performed in market |
| Producers will not offer good | Shortage |
| Factors of Production | Land, Labor, Capital |
| Land | All Natural Resources |
| Labor | Effort devoted to a task |
| Capital | Human Made Resource/$ |
| Entrepreneurs | Risk Takers/Word for Themselves |
| Trade-offs/Opportunity Cost | Alternatives that are given up |
| Guns and butter | military goods/social services |
| Thinking at the margin | Cost of adding one more unit |
| Production Possibilities Curve | Graph showing use of resources |
| Efficiency | Maximize production |
| Underutilization | Under production |
| Economic System | Society's Values and Goals |
| Three Economic Questions | What, How, Who |
| Factor Payments | $ received for capital goods |
| Patriotism | Love of one's country |
| Safety net | Government Programs Protection |
| Standard of Living | Level of Economic Prosperity |
| Traditional Economy | Habit, Custom or Tradition |
| Market Economy/Capitalism | Individuals make decisions |
| Centrally Planned Economy | Government Decides Econom |
| Mixed Economy | Government Plays a Limited Role |
| Market | Buyers/Sellers Exchange |
| Specialization | Concentration of Product Effort |
| Profit | Financial Gain |
| Adam Smith | Philosopher of Self Interest |
| Incentive | Hope of Reward/Fear Punish |
| Competitition | Struggle for profits |
| Laissez Faire | French for "Free Market" |
| Private Property | Assets owned by individuals |
| North Korea/Cuba | Communist |
| Canada/Great Britain | Socialist |
| Hong Kong/Singapore | Capitalist |
| United States | Limited Free Market |
| Industrial Revolution | Assembly Line |
| Types of Stock | Private/Public |
| Median of Exchange | Dollar/Yen/Drachma/Pound |
