| A | B |
|---|
| Incentive | something positive you get for making a choice |
| Economics | study of the choices people/organizations make to meet their wants/needs |
| Natural Resource | resource that comes from nature |
| Externalities | side effects of an economic good/service |
| Price Ceiling | highest price that can be charged for product/service |
| Demand | number of products consumers want |
| Competition | many businesses trying to get customers |
| Scarcity | limited resources but unlimited wants/needs |
| Consumers | people who buy products/services |
| Producers | people who produce products/services |
| Opportunity Cost | the option that you did NOT select |
| Supply | the amount of a good or service available to sell |
| Equilibrium | the price where the quantity supplied meets the quantity demanded |
| Needs | things required for survival |
| Law of Demand | as prices go up, demand goes down |
| Marginal Costs | the cost of making one more product |
| Inflation | an overall increase in the price of goods/services |
| Redistributing Income | when government transfers tax revenue from one group to another |
| Monopolies | large single sellers or producers of goods and services |
| Price Floor | The lowest price that a good or service can be sold |
