| A | B |
|---|
| Economics | the study of how people meet theri basic needs |
| Economist | someone who studies economics |
| Economic System | How a person answers the three questions: What should it be produced? How should it be produced? Who gets what is produced? |
| Problem of Scarcity | People have unlimited wants and a limited supply |
| Traditional Economy | marked by subsistence agriculture and cottage industry |
| Subsistence Agriculture | growing just enough to survive |
| Cottage Industry | producing necessary items at home |
| Free Enterprise System | means of producing things is in private hands |
| Capitalism | another term for Free Enterprise |
| Profit | amount made from selling an item apart from the cost of producing it |
| Suppy and Demand | Relationship of the amount you have to the amount others want |
| Commercial Industries | producing goods primarily for sale |
| Communist Economy | All businesses owned and manage by the government |
| Socialist Economy | Some key industries owned by the government while others are privately owned |
| Mixed Economy | characterized by a mixture of government and private control of the economy |
