| A | B |
|---|
| scarcity | unlimited wants and needs, combined with limited resources |
| command economy | when the government answers the three economic questions |
| free economy | when resources are owned by individuals rather than the government |
| mixed economy | when some goods and services are provided by the government and some by private enterprise |
| private enterprise | based on independent decisions by businesses and consumers with only a limited government role regulating those relationships |
| profit motive | refers to the use of resources to obtain the greatest profit |
| value | an individual view of the worth of a product or service |
| consumers | individuals who purchase products and services to satisfy needs |
| demand | a relationship between the quantity of a product consumers willing and able to purchase and the price |
| producers | businesses that use their resources to develop products and services |
| supply | a relationship between the quantity of a product that producers are willing and able to provide and the price |
| macroeconomics | studies economic behavior in the economy |
| microeconomics | examines the relationship between individual consumers and producers |
| demand curve | the graph that illustrates the relationship between price and the quantity demanded |
| law of demand | as the price of a product increases, less people will buy it |
| economic market | all of the consumers who will purchase a product or service |
| economic resources | classified as natural resources, capital, equipment, and labor |
| supply curve | the graph that illustrates the relationship between price and quantity supplied |
| law of supply | when the price of a product is increased , more will be produced |
| market price | the point where supply and demand are equal |
| pure competition | when many suppliers offer very similar products |
| monopoly | a type of market in which one supplier offers a unique product |
| oligopoly | few businesses offer very similar products or services |
| monopolistic competition | many firms competing with products that are somewhat different |
| economic utility | the amount of satisfaction a consumer receives from the consumption of a particular product or service |
