| A | B |
|---|
| Command economy | Economic system in which the government owns resources and dictates what is produced |
| Wants | Goods or services that are purchased to add comfort or pleasure to life |
| Consumer | A buyer and user of goods and services |
| Economics | The study of the decisions made for production, distribution, and consumption of goods and services to satisfy needs and wants |
| Economic decision-making | Process of choosing which needs or wants will be satisfied |
| Economic resources | Means from which goods and services are produced |
| Entrepreneurial resources | The initiative to combine natural, human, and capital resources |
| Free enterprise | Economic system in which freedom to consume and produce goods and services exists |
| Freedom of choice | Opportunity to make choices of goods and services and accept consequences of decisions |
| Goods | Items purchased to satisfy needs and wants |
| Human resources | People using efforts, knowledge, and skills at work to produce goods and services |
| Market economy | Goods and services are owned and controlled by the people |
| Market price | The point where supply and demand are equal |
| Marketplace | Anywhere goods and services exchange hands |
| Mixed economy | Combines elements of the command and market economies |
| Natural resources | Raw materials supplied by nature |
| Needs | Necessities required for living |
| Opportunity cost | Value of the next-best alternative that is forgone to produce or obtain another product |
| Capital resources | Goods and money used in the production of goods and services |
| Private property | Right to purchase, use, and discard of things of value |
| Producers | Individuals and organizations that determine which goods and services will be available for consumption |
| Profit | Money left after selling goods and services and costs of operating a business have been paid |
| Scarcity | Condition that exists when wants or needs exceed resources available |
| Services | Activities that can be consumed at the time of purchase to satisfy needs and wants |
| Tradeoff | Process of giving up something for gaining something else |
| Traditional economy | Economic system in which decisions are based on customs and centered on family |
| Competitors | Businesses that offer the same goods to the same customers |
