| A | B |
|---|
| When people's needs and wants are unlimited | Scarcity |
| The government determines what , how, and for whom products are produced | Command Economy |
| Individuals decide what, how, and for whom products are produced | Market Economy |
| How much of a product a manufacturer will produce for a price | Supply |
| How much of a produce consumers will buy for a price | Demand |
| Slopes up and to the right | Supply Curve |
| Slopes down to the right | Demand curve |
| Where the supply and demand curves meet | Equilibrium price and quanity |
| Manufacturers will produce more at a | Higher price |
| Consumers will buy more at a | Lower price |
| When a company controls all of a market | Monopoly |
| Must be paid regardless of how much of a good is produced | Fixed cost |
| Costs go up or down depending on how much is made. | Variable cost |
| Measures the advantage of producing one more product | Marginal benefit |
| The cost of choosing one opportunity over another. | Opportunity cost |
| This is true with competitive markets. | Like products are priced simular. |
| In a market economy, who decides how mush of a good or service is produced? | Consumers |
| If the price is set below the equilibrium price, what will happen? | Consumers will buy more than is produced and there will be a shortage. |
| If the price is set above the equilitrium price what will happen? | Producers will make more than consumers will buy and there will be a surplus |
