| A | B |
|---|
| Study of individuals, companies & households. | Microeconomics |
| Study of entire countries. | Macroeconomics |
| people who buy things. | Consumers |
| Those who make things to satisfy people’s needs. | Producers |
| things that can be purchased. | Goods |
| action, activities or events that are done for a fee. | Services |
| anything that people use to make or obtain what they want or need. | Resources |
| Factors of Production | Land, Labor, Capital, Entrepreneurship |
| finished products that people buy. | Consumer goods |
| A economic problem where you have unlimited wants but limited resources. | Scarcity |
| distribution of limited resources. | Allocation |
| one good is sacrificed for another. | Trade off |
| cause of the alternative in a trade off. | Oppotunity Costs |
| Shows the amount of two or more products that can be produced in a given time period | Production Possibilities Curve |
| 3 Basic economic questions | What, How, for whom to produce? |
| Based on custom and tradition | Traditional economy |
| Relies on government officials to answer economic questions- | Command economy |
| Economy where individuals answer the 3 economic questions | Market Economy |
| Market based economies in which government plays a limited role. | Mixed Economy |
| one of the first people to explain the process of market regulation. | Adam Smith |
| a shared good or service | Public Good |
| someone who would not choose to pay for a certain good or service, but would get the benefit | Free Rider |
| good or service that generates benefits | Positive externality |
| Used to explain how market, mixed economies work | Circular flow model |
