| A | B |
|---|
| Economists | they study how people, businesses, and societies make decisions seeking to get the most out of their limited resources. |
| Needs | A basic requirement for survival, such as food, clothing, and shelter. |
| Resources | anything that households and firms need in order to achieve their needs and wants. |
| Wants | simply something we would like to have but is not necessary for survival. |
| Economics | the study of how individuals, firms, and institutions convert limited resources into goods and services to satisfy our wants and needs. |
| Scarcity | the fundamental economic problem that forces consumers and producers to use resources wisely. |
| Standard of Living | Quality of life based on ownership or use of necessities and luxuries that make life easier. |
| Economic Policies | Government actions (some of them in the form of laws) that are specifically intended to influence how the economy is functioning. |
| Free Enterprise Economy | Economic system in which individuals or companies are generally free to enter any line of business (that is, provide any kind of goods or services they wish); usually subject to some rules (for example, forbidding anyone to practice dentistry without a license). A free enterprise economy is almost always a market economy |
| Households | Individuals and families who live at one particular address. |
| Macroeconomics | The study of how the economy works on a national and global scale. It is the study of such things as recessions, inflation, unemployment, and government fiscal or monetary policies. |
| Market Economy | Economic system in which supply, demand, and prices help people make decisions and allocate resources. |
| Microeconomics | The study of how households and businesses make choices about how to utilize their resources (for example, how people decide what goods and services to buy, and how businesses decide how many of something to produce and how to price their goods and services.) |
| Goods | things that you can see and touch. |
| Services | activities that are consumed at the same time they are produced. |
| Economic Resources | also called factors of production, are the means through which goods and services are produced. |
| Natural Resources | raw materials produced by nature. |
| Human Resources | the people who contribute physical and mental energy to the production process. |
| Capital Rsources | the tools, equipment, and buildings that are used to produce goods and services. |
| Economic Decision Making Process | the process of choosing which wants, among several options, will be satisfied. |
| Tradeoff | the process of giving up something for gaining something else. |
| Opportunity Cost | the value of the next-best alternative that you did not choose. |
| Marketplace | anywhere that goods or services exchange hands. |
| Traditional Economy | goods and services are produced the way it has always been done (customs) and centered on family. |
| Mixed Economy | combines the elements of the command and market economies. |
| Command Economy | an economics system in which the government owns resources and dictates what is produced. |
| Consumer | buys and uses goods and services. Consumers decide what to buy, where to buy, from whom to buy, and what price they are willing to pay. |
| Producers | individuals and organizations that determine what products and services will be available for sale. |
| Demand | the quantity of goods or services that consumers are willing and able to buy. |
| Supply | refers to the quantity of goods or services that businesses are willing and able to provide. |
