| A | B |
|---|
| Economic System | Set of rules by which a nation decides how to distribute its resources to satisfy its people's wants. |
| Economic Resources | resources that can be used to produce goods and services |
| Factors of Production | Economic resources being used to produce goods and services |
| Natural Resources | things that come from air, water or earth |
| Nonrenewable Resources | natural resources that cannot be replaced. |
| Renewable resources | natural resources that can be renewed through efforts of people. |
| Human resources | people who contribute physical and mental energy to the production process. (Labor) |
| Capital Resources | items other than natural resources used to produce goods and services. Things like builidng, machines and tools. |
| Entrepreneurial Resources | the initiative to combine natural, human and capital resources to provide goods and services. |
| Scarcity | the lack of something that can be used to satisfy the wants of a group of people. Unlimited wants and limited resources. |
