| A | B |
|---|
| wants | desires that people have that can be met by getting a product or service |
| economics | study of how people choose to use their limited resources to satisfy their unlimited wants |
| resources | all the things that can be used in making products or services that people want |
| natural resources, labor, capital | 3 types of resources |
| scarcity | occurs whenever we do not have enough resources to produce all of the things we want; the basic economic problem |
| economic system | Nation's way of producing things its people want and need |
| traditional economy | an economic system in which the decisions of what, how, and for whom to produce are based on custom or habit |
| market economy | economic system in which individuals and businesses own all resources and make economic decisions on the basis of price |
| command economy | an economic system in which the govt. makes the major economic decisions |
| mixed market economy | a market economy that has elements of command and tradition |
| market | type of economy found in the United States |
| what to produce, how to produce and for whom to produce | 3 basic economic questions |
| land, oil, minerals, trees | examples of natural resources |
| workers and their abilities | examples of labor resources |
| crane, buildings, tools, equipment | examples of capital resources |
