| A | B |
|---|
| Opportunity Cost | Opportunity you lose when you choose one resource for another |
| Scarcity | Limited resources but unlimited wants |
| Interdependence | being mutually dependent, for example, countries trading with each other become dependent on the products or goods received from the other country |
| Market Economy/Capitalism | an economy in which decisions on production and consumption are made by individuals acting as buyers and sellers |
| Socialism | Public Ownership, Some government control and planning |
| specialization | the concentration of production on fewer kinds of goods and services than are consumed |
| Command Economy/Communism | Government controls every aspect of economy |
| Mixed Economy | an economy that combines features of more than one of the traditional, command, and market systems |
| traditional economy | an economy in which decisions on production and consumption are based upon customs, beliefs, rituals, and habits |
| absolute advantage | the ability of one country or company, using the same quantity of resources as another country or company, to produce a particular product at a lower absolute cost |
| Traditional Economy | an economy where decisions on production and consumptions are based on customs |
| Standard of Living | a person's level of material well being |
| Specialization | concentration of production on fewer kinds of goods |
| productive resources | natural resources used to make goods and services |
| infrastructure | underlying stucture for a system |
