| A | B |
|---|
| Economy | The organized way a nation provides for the needs and wants of its people |
| Resources | All the things used in producing goods & services |
| Factors of Production | Comprised of 4 resources: land, labor, capital and entrepreneurship |
| Infrastructure | Physical development of a country |
| Entrepreneurship | Skills of people who are willing to invest their time and money to run a business |
| Scarcity | The difference between needs and wants and available resources |
| Traditional Economy | Economic system where Habits, traditions and rituals answer basic questions of what, how & from whom |
| Market Economy | No government involvement in economic decisions |
| Command Economy | Country’s government makes all economic decisions |
| Capitalism | Political & economic philosophy characterized by marketplace competition and private ownership of business **same as free enterprise system** |
| Socialism | System with democratic political institutions & increased government involvement in the economy **main goal to meet basic needs of all** |
| Communism | Social, political & economic philosophy in which government, usually authoritarian, controls the factors of production **no private ownership of property or capital** |
