| A | B |
|---|
| capitalism | Private ownership of resources |
| 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 & wants will be satisfied using the resources on hand |
| economies of scale | The cost advantage obtained by a business due to expansion |
| equilibrium price & quantity | Point at which the supply & demand curves meet |
| fixed costs | Costs that must be paid regardless of how much of a good or service is produced (i.e. rent) |
| marginal benefit | Measures the advantages of producing one additional unit of a good or service |
| marginal cost | Measures the disadvantages or producing one additional unit of a good or service |
| needs | Things you must have in order to survive |
| opportunity cost | The value of the next best alternative |
| profit | Revenues minus expenses |
| scarcity | People's needs & wants exceed resources |
| supply | A quantity of goods & services a producer is willing to produce at different prices |
| variable costs | Costs that increase or decrease depending on the quantity that is produced |
| wants | Things a person must have to be satisfied |
