| A | B |
|---|
| Factors of Production or Economic Resources | The means (method) to produce something. |
| Scarcity | A shortage of resources. |
| Natural resources | The raw materials found in nature. |
| Human resources, or labor | The knowledge, efforts, and skills people bring to their work. |
| Capital resources | Are the things used to produce goods and services, like buildings, materials, and equipment. |
| Entrepreneurial resources | Are required to meet the changing wants and needs of the people. |
| Economics | Studies how society chooses to use resources to produce and distribute goods and services for people’s consumption. |
| Market economy | Economic decisions are made in the marketplace according to the laws of supply and demand. |
| Price | Is the amount of money given or asked for when goods and services are bought or sold. |
| Demand | is the amount or quantity of goods and services that consumers are willing to buy at various prices. |
| Supply | Is the amount of goods and services that producers will provide at various prices. |
| Command Economy | a central authority makes the key economic decisions. It is also called a planned or managed economy. |
| Mixed Economy | The state takes care of people’s needs while the marketplace takes care of people’s wants. |
