| A | B |
|---|
| economy | The way a nation makes choices about how to use its resources. |
| capital | Money needed to start and operate a business. |
| consumer price index | Measure of the change in price over a set period of time of some 400 specific goods and services used by the average urban household. |
| scarcity | Difference between wants and needs on one hand and available resources on the other hand. |
| command economy | In this type of economy, the government answers three basic economic questions: what, how, and for whom? |
| gross domestic product | A measure of the goods and services produced using labor and property located in the United States |
| inflation | Refers to rising prices. |
| infrastructure | Refers to a country’s physical development—the state of its roads, ports, sanitation facilities, and utilities. |
| capitalism | Economic system characterized by private ownership of businesses and marketplace competition. |
| employee productivity | Measure of output divided by input of worker hours. |
| business cycle | Stages an economy goes through due to recurring slowdown and growth. |
| privatization | The process of selling government-owned businesses to private individuals. |
