| A | B |
|---|
| Allocate | To distribute |
| Anti-trust Laws | Laws that prevent the formation of monopolies |
| Capital | Tools |
| Capitalist | Economic system in which individuals own productive resources; market economy |
| Command Economy | Economy in which the government makes all economics decisions |
| Consumers | People who buy things |
| Contract | Legal agreement |
| Cost-benefit Analysis | Process of weighing costs and benefits in order to make a rational decision |
| Deregulation | Situation in which government decides to stop regulating a particular industry; take away rules |
| Division of Labor | Type of characterization in which different workers do different parts of the same job |
| Economics | Study of how to satisfy unlimited wants with limited resources |
| Efficient | Producing maximum output with minimum input |
| Entrepreneur | A person who organizes |
| Goods | Products |
| Human Capital | The knowledge and skills that workers acquire through education |
| Input | Resource used in production |
| Labor | Workers in the production process |
| Land | Any natural resource provided by nature and used in the production process |
| Marginal Benefit | Additional benefit gained by an additional unit of cost |
| Marginal Cost | Additional cost |
| Market Economy | An economic system based on free enterprise |
| Market Failure | A business benefits from production whereas other people end up paying some of the costs |
| Needs | Things that are necessary for survival |
| Opportunity Cost | The most desirable alternative given up as the result of a decision |
| Output | How much of a good and service that was produced with inputs. |
| Private Goods | Goods paid for and consumed by one individual or household |
| Production Possibilities Curve | Graph that shows the amounts of two products that can be made with a given amount of resources |
| Productivity | Efficient use of resources; output per unit of input |
| Public Goods | Goods for which the costs and benefits are shared by everyone in a society |
| Rational Decision | Choice in which you weigh the costs and benefits of each option |
| Regulation | Using laws by the government to control what businesses can do |
| Resources | All the things people can use to make goods |
| Scarcity | Limited amount of something |
| Specialize | Work at just one particular kind of job or produce one part of a particular thing |
| Trade-off | A choice in which you gain something, ex. "guns or butter" |
| Transfer Payments | Money payments made by governments for which no service is require in return; unemployment compensation |
| Trust | A group of companies that combine their resources in order to control production and price |
| Voluntary Exchange | the act of buyers and sellers freely and willingly engaging in market transactions for goods and services |
| Wants | Things that are luxury items that are not necessary for survival |
| Incentives | Positive and negative rewards that encourage economic behavior such as making purchases or working to increase productivity |
| Marginal Utility | The satisfaction and usefulness of adding one unit in production or one more item in consumption |
| Standard of Living | Quality of life of residents and workers in a society, measured by per capita GDP and other lifestyle factors such as length of work day, safety, access to health care, and literacy. |
| Traditional Economy | Economic system where roles are handed down from generation to generation and the basic questions are answered as they have been since the distant past. |
| Equity | Fairness in the access to goods and services |
