| A | B |
|---|
| economy | the organized way a nation provides for the needs and wants of its people |
| resources | all the things used in producing goods and services |
| factors of production | economic terms for the four categories of resources: land, labor, capital and entrepreneurship |
| infrastructure | the physical development of a country |
| entrepreneruship | the process of starting and operating your own business |
| scarcity | the difference between what consumers want and need and what the available resources are |
| traditional economy | tradition and rituals that answer the basic questions of what, how and for whom |
| market economy | an economic system in which individuals and companies decide what will be produced, when, and how it will be distributed |
| command economy | an economic system in which the government decides what, when, and how much will be produced and distributed |
| productivity | the output per worker hour that is measured over a defined period of time, such as a week, month, or year |
| Gross domestic product (GDP) | the output of goods and services produced by labor and property located within a country |
| Gross national product (GNP) | the total dollar value of goods and services produced by a nation |
| inflation | a period of rising prices |
| consumer price index (CPI) | measurement of the change in price over a period of time of approximately 400 retail goods and services used by the average urban household |
| producer price index (PPI) | measurement of wholesale price levels in the economy |
| business cycle | recurring changes in economy activity, such as an expansion and contraction of an economy |
| expansion | a time when the economy is flourishing also called prosperity |
| recession | a period of economic slowdown that lasts for two quarters, or six months |
| depression | a period of prolonged recession |
| recovery | a period of renewed economic growth followed by a recession or depression |
