| A | B |
|---|
| factors of production | the resources people have for producing, goods and services to sastify their wants |
| capitol | anything produced in an economy that is saved to be used to produce other goods and services |
| consumption | the act of buying or using goods or services |
| opportunity cost | the benefit given up when scarce resources are used for one purpose instead of another |
| scarcity | the problem that resources are always limited in comparsion with the number and variety of wants people have |
| quantity | amount |
| technology | the practical application of science to commerce |
| traditional econemy | an ecomic system in which the basic economic decisions are made according to long established ways of behaving that are unlikely to change |
| command econemy | an economic system in which the government or a central authority owns or controls the factors of production and makes the basic economic activities |
| market econemy | a economic system in which private individual own the factors of production and are free to make their own the factors of production and are free to make their own choices about production, distribution and consumpition |
| profit | the difference between what it costs a business to produce something and the price the buyer pays for it |
| invest | to use money to help a business get started or grow, with the hope that the business will earn a profit that you can share |
