| A | B |
|---|
| Scarcity | Means not having enough resources to satisfy every need |
| Economic Decision-Making | Process of choosing which wants, among several options, will be satisfied |
| Tradeoff | When you give up something to have something else |
| Opportunity Cost | Value of the next-best alternative that you did not choose |
| Economic System | A nation's plan for answering the three economic questions |
| Command Economy | The resources are owned and controlled by the government |
| Market Economy | The resources are owned and controlled by the people of the country |
| Traditional Economy | Goods and services are produced the way it has always been done |
| Mixed Economy | Combines elements of the command and market economies |
| Captialism | Refers to the private ownership of resources by individuals rather than by the government |
| The Right of Private Property | Means you can own, use or dispose of things of value |
| Freedom of Choice | Means you can make decisions independently and must accept the consequences of those decisions |
| Competition | The rivalry among businesses to sell their goods and services is known as ..... |
