| A | B |
|---|
| consumer | A person who selects, purchases, uses or disposes of goods or services. |
| needs | Things that are required to live |
| wants | Things that add comfort and pleasure to your life. |
| goods | Things that you can see and touch. They are the products you can purchase to meet your wants and needs. |
| services | Activities (hair cut, physical exam) that are consumed at the same time they are produced. |
| economic resources | The means through which goods and services are produced. The Factors of Production |
| natural resources | Raw materials supplied by nature. |
| scarcity | Not having enough resources to satisfy every need. |
| economic decision-making | The process of choosing which wants, among several options, will be satisfied. |
| trade-off | When you give up something to have something else. |
| opportunity cost | The value of the next-best alternative that you did not choose. |
| economic system | A nation’s plan for answering the three economic questions. based on how much the government is involved in the marketplace. |
| Command Economy | An economic system where the resources are owned and controlled by the government. |
| Market Economy | An economic system where the resources are owned and controlled by the people of the country. |
| Traditional Economy | An economic system where the goods and services are produced the way it has always been done. This system is used in countries that are less developed and are not yet participating in the global economy. |
| Mixed Economy | An economic system where the economic system combines elements of the command and market economies. |
| capitalism | the private ownership of resources by individuals, rather than by the government. |
| profit | The money left from sales after all of the costs of operating a business have been paid. |
| competition | The rivalry among businesses to sell their goods and services. |
| freedom of choice | You can make decisions independently and must accept the consequences of those decisions. |
