| A | B |
|---|
| Needs | Things that are required in order to live |
| Wants | Things that add comfort and pleasure to you life |
| Goods | Things that you can see and touch |
| Services | Activities that are consumed at the same time they are produced |
| Economic Resources | The means through which goods and services are produced |
| Scarcity | Not having enough resources to satisfy every need |
| Economic Decision-Making | The process of choosing which wants, among several options, will be satisfied |
| Tradeoff | When you give up something to have something else |
| Opportunity Cost | The value of the next-best alternative that you did not choose. |
| Economic System | A nation's plan to answer the 3 economic questions |
| Command Economy | The resources are owned and controlled by the government |
| Market Economy | The resources are owned and controlled by the people of the country |
| Traditional Economy | Goods and services are produced the way it has always been done |
| Mixed Economy | Combines the elements of the command and market economies |
| Capitalism | Refers to the private ownership of resources by individuals, rather than by the government |
| Consumer | A person who buys and uses goods and services (aka - customer) |
| Producers | Individuals and organizations that determine what products and services will be available for sale |
| Demand | The quantity of a good or service that consumers are willing and able to buy |
| Supply | The quantity of a good or service that businesses are willing and able to provide |
| Market Price | The point where supply and demand are equal |
