| A | B |
|---|
| The way a nation makes economic choices. | Economy |
| All the things used in producing goods and services. | Resources |
| The technical term economists use for resources. | Factors of Production |
| Everything on the earth that is in its natural state. | Land |
| All of the people who work in the economy. | Labor |
| The money needed to start and operate a business. | Capital |
| The process of starting and managing your own business. | Entrepreneurship |
| The physical development of a country, including its roads, ports, sanitation, facilities, and utilities, especially telecommunications. | Infrastructure |
| The difference between wants and needs and available resources. | Scarcity |
| Economy in which there is no government involvement in economic decisions. | Market Economy |
| The government is responsible for answer the three basic economic questions. | Command Economy |
| An economic system characterized by private ownership of businesses and marketplace competition. | Capitalism |
| Countries that try to reduce the differences between rich and poor. | Socialist |
| Countries that have a totalitarian form of government which runs everything. | Communist |
| The process of selling government-owned businesses to private individuals. | Privatization |
| Output per worker hour. | Productivity |
| A measure of the goods and services produced using labor and property located in this country. | Gross Domestic Product |
| A period of rising prices. | Inflation |
| Measures the change in price over a time of some 400 specific retail goods and services used by the average urban household. | Consumer Price Index |
| Measures wholesale price levels in the economy. | Producer Price Index |
| Recurring slow-down and growth of an economy. | Business Cycle |
| Point in the business cycle when the economy flourishes. | Prosperity |
| A period of economic slowdown that lasts for two quarters, or six months | Recession |
| A period of prolonged recession. | Depression |
| The increase in the overall economic activity. | Recovery |
