| A | B |
|---|
| Scarcity- | the result of unlimited wants and needs combined with limited resources. |
| Controlled economy- | an economic system where the government attempts to own and control important resources and to make the decisions about what will be produced and consumed. |
| Free economy- | an economic system in which resources are owned by individuals and decisions are made independently with no attempt at government regulation or control. |
| Mixed economy- | an economic system in which some goods and services are provided by the government and some by private enterprise. |
| Private enterprise- | an economic system based on independent decisions by businesses and consumers with only a limited government role regulating those relationships. |
| Profit motive- | the use of resources toward the greatest profit for the producer regulating those relationships. |
| Value- | an individual view of the worth of a product or service. |
| Demand- | a relationship between the quantity of a product consumers are willing and able to purchase and the price. |
| Supply- | a relationship between the quantity of a product that producers are willing able to provide and the price. |
| Economic decision- | making-the process of choosing which wants, among several options, will be satisfied. |
| Tradeoff- | what you make when you give something up to have something else. |
| Opportunity cost- | the value of the next-best alternative that you did not choose |
| Needs- | things that are required in order to live. |
| Wants- | things that add comfort and pleasure to your life. |
| Goods- | things you can see and touch; they are products you can purchase to meet your wants and needs. |
| Services— | activities that are consumed at the same time they are produced. |
| Economic resources- | the means through which goods and services are produced |
| Demand curve- | the relationship between price and the quantity demanded. |
| Law of demand- | when prices increase, demand decreases. |
| Economic market- | all of the consumers who will purchase a particular product or service. |
| Supply curve- | graph of the relationship between price and quantity supplied. |
