| A | B |
|---|
| Earning | gaining money by working, owning a business or receiving investment returns |
| Spending | Using money to purchase goods and services |
| Law of Scarcity | An economic system cannot produce all goods and services that consumers want |
| Trade-off | The choice of one item while giving up another |
| Opportunity Cost | The highest-valued alternative that must be given up when a choice is made |
| Saving | Putting aside money for later use |
| Borrowing | obtaining money, goods, or services at present in exchange for the promise of future payment |
| Market | The economy in the United States is a free enterprise system |
| Standard of Living | The more money a person earns, the more the person can spend impacts the way they live |
| Recession | When the economy slows down |
