| A | B |
|---|
| Economics | Studies how individuals and societies seek to satisfy needs and wants through incentives, choices, and allocation of scarce resources |
| Scarcity | The condition that exists when wants exceed resources available to satisfy wants. |
| Capital Resources | Goods produced and used to make other goods and services. |
| Natural Resources | “Gifts of nature” that are present without human intervention (ex. land) |
| Human Resources | The knowledge, efforts, and skills people bring to their work, also known as labor. |
| Entrepreneurial Resources | The initiative to improve goods and services or create new ones. |
| Command economy | Economic system that is run by a central government or authority |
| Market economy | Characterized by private ownership of the means of production |
| Socialist economy | Characterized by more government ownership and central planning. |
| Mixed Economy | A combination of a command and market economy. |
| Traditional Economy | - The type of economy where people believe in doing things the same as they have always been done in the past. |
