| A | B |
|---|
| needs | things that are required in order to live |
| wants | things that add comfort and pleasure to your life |
| goods | things you can see and touch; they are products you can purchase to meet your wants and needs |
| services | activities that are consumed at the same time they are produced |
| economic resources | the means through which goods and services are produced |
| natural resources | raw materials supplied by nature |
| human resources | people producing goods and services |
| capital resources | the products and money used to produce goods and services |
| scarcity | not having enough resources to satisy every need |
| economic decision-making | the process of choosing which wants, among several options, will be satisfied |
| tradeoff | what you make when you give something up to have something else |
| opportunity cost | the value of the next-best alternative that you did not choose |
| economic system | a nation's plan for answering the three economic questions: |
| command economy | an economy in which resources are owned and controlled by the government |
| market economy | an economy in which the resources are owned and controlled by the people of the country |
| traditional economy | an economy in which goods and services are produced the way they have always been produced |
| mixed economy | an economy that combines elements of the command and market economies |
| capitalism | the private ownership of resources by individuals, rather than by the government |
| 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 service 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; the equilibrium point |
