| A | B |
|---|
| Scarcity | The inability to satisfy all wants and needs at the same time |
| Resources | Natural, human, capital, entrepreneurship |
| Opportunity Cost | What is given up when a choice is made |
| Price | Determined by the interaction of supply and demand |
| Demand | What consumers are willing to buy at a certain price |
| Supply | What producers are willing to sell at a certain price |
| Consumption | Using goods and services |
| Free Market Economy | Economic system with private ownership, profit, competition |
| Command Economy | Centrally planned economy, little consumer choice |
| Mixed Economy | Most common economic system |
| Consumer Sovereignty | Consumers determine through purchases what goods will be produced |
| Competition | Rivalry between producers or sellers of a good or service |
| Traditional Economy | Economic decisions are based on custom and historical precedent |
| Profit | Earnings after all expenses have been paid |
