| A | B |
|---|
| capital | The manufactured goods used to produce other goods and services. |
| entrepreneurship | The ability of individuals to start new businesses, introduce new products, and improve business processes. |
| economy | The ways in which nations make decisions to allocate their resources. |
| bartering | The exchange of products without the use of money. |
| command economy | A system in which a central authority controls all economic decisions. |
| market economy | A system in which supply, demand, and pricing allows people to make economic decisions through free interaction. |
| supply | The amount producers are willing and able to produce at a certain price. |
| demand | The amount consumers are willing and able to buy at a certain price. |
| equilibrium point | The price at which consumers and producers agree. |
| price ceiling | The maximum price set by the government. |
| price floor | The minimum price set by the government. |
| demand elasticity | The degree to which demand is affected by price. |
| elastic demand | Demand that is affected by changes in price. |
| financial market | A mechanism that provides the means for purchasing and selling stocks, bonds, commodities, and other financial instruments. |
| depository institutions | Institutions that handle deposited money, such as commercial banks, credit unions, and savings and loan associations. |
| non-depository institutions | Institutions that act as intermediaries between savers and borrowers. |
| incentive | A device that encourages specific behavior and helps motivate individuals to take specific action. |
