| A | B |
|---|
| Labor | time,energy,knowledge,skill |
| Land | natural resources |
| capital | items used to produce other goods |
| Factors of Production | Labor, Land, and Capital |
| Traditional Economy | Jobs are passed down from generation to generation |
| Command Economy | Government makes decisions and determines how resources are used |
| Market Economy | Resources owned and controlled by individuals |
| Mixed Economy | A mixture of two or more of the the three economies |
| Free Enterprise | Capitalism |
| Market Price | the price at which buyers and sellers agree to trade |
| Types of Businesses | Sole Proprietorship, Partnership, and Corporation |
| Sole Proprietorship | business owned by an individual |
| Partnership | When two or more people own a business |
| Corporation | A business that is separate from the people who own it |
| entrepreneur | starts a business |
| free markets | operate without undue gov't influence |
| private property | can be owned without undue gov't influence |
| profit | earnings after expenses have been paid |
| competition | results in better quality at a lower price |
| consumer sovereignty | Purchases decide what will be produced. |
| Mixed economies are | the most common economic system. |
| scarcity | All wants can't be satisfied at once. |
| Resources | are factors of production. |
| Choices must be made | since goods and services are limited. |
| Opportunity cost is what | is given up when a choice is made. |
| Price determines who | acquires goods and services. |
| Incentives | motivate and change economic behavior. |
| Supply and demand interact | to determine price. |
| Production is combining | resources to make goods. |
| Consumption | using goods and services |
