| A | B |
|---|
| productive resources | also called factors of production or capital |
| factors of production | resources (also called capital) are used to create new goods or offer services |
| utility maximization | eople want to get as much satisfaction as possible from their work and money |
| capitalist | economy in in which means of production are owned primarily by private individuals or firms, not by the government |
| socialist | the means of production are owned or controlled collectively or by government, not by individuals. |
| Communism | an economic system in which all property is owned collectively and nothing is owned by an individual |
| mixed economy | there are free market as well as government-controlled or socialist forces at work. |
| private sector | individuals and privately owned businesses that work, provide goods and services, and purchase them from others |
| public sector | defined by governmental or communal economic activities. |
| monopoly | a single firm is the sole provider of a good or service |
| negative externality | When someone else bears the costs for a benefit |
| incomplete market | When the need or demand for a good or service is higher than the available supply |
