| A | B |
|---|
| Capitalism | the private ownership of resources by individuals rather than by the government |
| Demand | the quantity of a good or service that consumers are willing to buy at a given price |
| Economic decision making | "the process of choosing which needs and wants, among several, will be satisfied using the resources on hand" |
| Economic resources | means through which goods and services are produced |
| Economies of scale | the cost advantages obtained due to expansion |
| Equilibrium price and quantity | point at which the supply and demand curves meet |
| Fixed costs | costs that must be paid regardless of how much of a good or service is produced |
| Marginal benefit | measures the advantages of producing one additional unit of a good or service |
| Marginal cost | measures the disadvantages of producing one additional unit of a good or service |
| Needs | the things that a person must have in order to survive |
| Opportunity cost | cost,value of the next-best alternative |
| Profit | difference between the revenues earned by a business and the costs of operating the business |
| Scarcity | occurs when people’s needs and wants are unlimited and the resources to produce the goods and services to meet those needs and wants are limited |
| Supply | the quantity of a good or service a producer is willing to produce at different prices |
| Variable costs | costs that go up and down depending on the quantity of the good or service produced |
| Wants | things that a person thinks he or she must have in order to be satisfied |
| Elastic Demand | change in price creates a change in demand |
| Inelastic Demand | when a change in price creates very little change in demand |
| Oligopoly | When a market is dominated by small number of businesses that gain the majority of total sales revenue |
| Perfect competition | consists of a very large number of businesses producing nearly identical products and has many buyers |
| Monopoly | where there is only one provider of a product or service |
| Monopolistic Competition | has a large number of independent businesses that produce goods and services that are somewhat different. |
