| A | B |
|---|
| LAISSEZ FAIRE-POLICY | Policy letting things take their own course |
| SCARCITY | in short supply |
| FACTORS OF PRODUCTION | inputs used in production of goods and services |
| PHYSICAL CAPITAL | factor for production, consisting machinery |
| HUMAN CAPITAL | skills, knowledgew, and experience possessed by an individual |
| OPPORTUNITY COST | loss of potential gain |
| EFFICIENCY | state of quality of having a good system, efficient |
| UNDERUTILIZATION | not being used enough |
| TRADITIONAL ECONOMY | traditions, beliefs, helps shape the goals and services, the economy produces |
| MARKET ECONOMY | production and prices are determined by unrestricted competition between businesses |
| CENTRALLY PLANNED ECDONOMY | investment, production and allocation of capital goods take place |
| MIXDED ECONOMY | combined private and public enterprise |
| SOCIALISM | social organization regulated by community as a whole |
| COMMUNISM | Karl Marx theory everyone gets paid according to their habits |
| SHORTAGE | something needed, cannot be obtained |
