| A | B |
|---|
| Needs | are required in order to live |
| Wants | are things that add comfort and pleasure to your life. |
| Goods | are things that you can see and touch. |
| Services | are activities that are consumed at the same time they are produced. |
| Economic resources | tors of production, are the means through which goods and services are produced. |
| Natural resources | are raw materials produced by nature |
| Human resources | are the people who contribute physical and mental energy to the production process. |
| Capital resources | are the tools, equipment, and buildings that are used to produce goods and services. |
| basic economic problem | exists due to limited resources for satisfying unlimited needs and wants. |
| Scarcity | not having enough resources to satisfy the unlimited needs and wants. |
| Economic decision-making | the process of choosing which wants, among several options, will be satisfied. |
| Tradeoff | process of giving up something for gaining something else. |
| Opportunity cost | the value of the next-best alternative that you did not choose. |
| Economic decision-making | means of choosing a course of action among several alternatives. |
| economic system | a nation’s plan for answering the three economic questions. |
| Private property | can own, use, or dispose of things of value. |
| Freedom of choice | can make decisions independently and must accept consequences of those decisions. |
| Profit | 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. |
| consumer | buys and uses goods and services. |
| Producers | are 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. |
