| A | B |
|---|
| capitalism | the private ownership of resources by individuals rather than by the government |
| demand | the quantity of a good or service that consumers are willing to buy at a given price |
| economic decision making | the process of choosing which needs and wants you will satisfy using the resources you have |
| economic resources | the means thorugh which goods and services are produced |
| economies of scale | the cost advantages obtained due to expansion |
| equilibrium price and quantity | the point at which the supply and demand curves meet |
| fixed costs | costs that must be paid regardless of how much of a good or service is produced |
| marginal benefit | measures the advantages of producing one additional unit of a good or service |
| marginal cost | measures the disadvantages of producing one addtional unit of a good or service |
| needs | things you must have in order to survive |
| opportunity cost | the value of the next-best alternative |
| profit | the difference between the revenues earned by a business and the costs of operating the business (expenses) |
| scarcity | occurs when people's needs and wants are unlimited and resources are limited |
| supply | the quantity of a good or service a producer is willing to produce at different prices |
| variable costs | costs that go up and down depending on the quantity of the good or service produced |
| wants | things that you think you must have in order to be satisfied |
| hierarchy of needs | identifies five areas of needs-physiological, security, social, esteem, self-actualization |
| economic wants | a desire for material goods and services |
| noneconomic wants | the desire for nonmaterial things such as sunshine, fresh air, exercise, friendship, and happiness |
| goods | products you can see and touch |
| services | activities that are consumed as they are produced |
| factors of production | natural resources, human resources, and capital resources |
| natural resources | raw materials supplied by nature |
| human resources | people who create goods and services |
| capital resources | the assets used in the production of goods and services like buildings equipment and supplies |
