| A | B |
|---|
| trade-off | Sacrifice made when a resource used to produce one item cannot be used to produce another |
| income | Money payments that people (households) receive from business firms and government in exchange for resources |
| technology | Use of science to create new products or more efficient ways to produce products |
| traditional economy | Economic system based on customs, habits, laws and religious beliefs |
| command economy | Economic system that relies on government planners to answer the three basic economic questions |
| consumers | People who wish to buy goods and services |
| needs | Goods and services that are necessary for survival |
| capital goods | Buildings, structures, machinery, and tools used in the production process |
| factors of production | Resources used to produce goods and services |
| economics | Study of choices people make in an effort to satisfy their wants and needs |
| economic system | Organized set of procedures that a nation follows in producing and distributing goods and services |
| human resources | People who work |
| opportunity cost | Value of what is given up when choosing one item over another |
| profit | Money that remains after the costs of production have been paid |
| market economy | Economic system that relies on individuals to answer the three basic economic questions |
