| A | B |
|---|
| Needs | The things that are required in order to live. |
| Wants | The things that add comfort and pleasure to your life. |
| Goods | The things that you can see and touch. |
| Services | Activities provided for the satisfaction of others that are consumed at the same time they are produced. |
| Economic Resources | The things available to be used to produce goods and services. |
| Scarcity | Not having enough resources to satisfy every need. |
| Economic Decision-Making | The process of choosing which needs and wants will be satisfied. |
| Trade-off | When you give up something to have something else. |
| Opportunity Cost | The value of the next best alternative that you were not able to choose. |
| Economic System | The method a country uses to answer the three economic questions. |
| Command Economy | The resources are owned and controlled by the government. |
| Market Economy | The resources are owned and controlled by the people of the country. |
| Traditional Economy | Goods and services are produced the way it has always been done. |
| Mixed Economy | Combines elements of the command and market economies. |
| Capitalism | Refers to the private ownership of economic resources by individuals, rather than by the government. Individual owners are free to decide what to produce with the resources they own. |
| Consumer | A person who buys and uses goods and services. |
| Producers | Individuals and organizations that determine what products and services will be available for sale. |
| Demand | The quantity of a good or services that consumers are willing and able to buy. |
| Supply | The quantity of a good or service that businesses are willing and able to provide. |
| Market Price | The point where supply and demand are equal. |
