| A | B |
|---|
| Capitalism | private ownership of resources by individuals rather than by the |
| Profit | difference between the revenues taken in by a business and the costs of |
| Economic decision making | the process of choosing which needs and wants, |
| Scarcity | occurs when people’s needs and wants are unlimited and the resources |
| Opportunity cost | value of the next-best alternative; the one you pass up |
| command economy | Government determines What, How, and for Whom products and services are produced |
| market economy | suppliers produce whatever goods and services they wish and set prices based on what consumers are willing to pay. |
| traditional economy | Goods and services produced the way they have always been produced |
| mixed economy | Elements of the command and market economies are combined |
| economics | the flow of goods and services between people. |
| production | obtains products or services for sale. |
| voluntary exchange | a transaction in which both suppliers an consumers believe they benefit. |
| free enterprise system | Another name for the market economy |
| enterprise | anither name for busines |
| capital | Another name for the cash and goods a business owns |
| capitalism | the market economy or free enterprise system is also referred to as |
