| A | B |
|---|
| Capital Resources | Assets used in the production of goods and services |
| Capitalism | The private ownership of resources by individuals rather than by the government |
| Command Economy | An economic system in which the government determines what, how, and for whom products and services are produced |
| Demand | The quantity of a good or service that consumers are willing to buy at a given price |
| Economic Decision Making | The process of choosing which needs and wants, among several will be satisfied using the resources on hand |
| Economic Resources | Means through which goods and services are produced |
| Economic Want | Desire for material goods and services |
| Economies of Scale | The cost advantages obtained due to expansion |
| Elastic Demand | When a change in price creates a change in demand |
| Esteem need | Examples include respect and recognition |
| Equilibrium Price and Quantity | Point at which the supply and demand curves meet |
| Factors of Production | Natural, Human, and Capital Resources |
| Fixed Costs | Costs that must be paid regardless of how much of a good or service is produced |
| Goods | Products you can see and touch |
| Human Resources | People who create goods and services |
| Inelastic Demand | When a change in price creates very little change in demand |
| Law of Diminishing Returns | If one factor of production is increased while others stay the same, the resulting increase in output (product produced) will level off after some time and then decline. |
| Marginal Benefit | Measures the advantages of producing one additional unit of a good or service |
| Marginal cost | Measures the disadvantages of producing one additional unit of a good or service |
| Market Economy | Economic system in which individuals and businesses decide what, how, and for whom goods and services are produced |
| Maslow's Hierarchy of Needs | Pyramid of needs - Identifies five areas of needs. The bottom part of the pyramid must be fulfilled before one can focus on the next level of the pyramid |
| Mixed Economy | When elements of the command and market economies are combined |
| Monopolistic Competition | Has a large number of independent businesses that produce goods and services that are somewhat different |
| Monopoly | Exists when there is only one provider of a product or service |
| Natural Resources | Raw materials supplied by nature |
| Needs | Things that a person must have in order to survive |
| Oligopoly | Exists when a market is dominated by a small number of businesses that gain the majority of total sales revenue |
| Opportunity Cost | The value of the next best alternative |
| Perfect Competition | Consists of a very large number of businesses producing nearly identical products and has many buyers |
| Physiological Need | Examples include food, sleep, water, shelter, air |
| Profit | Difference between the revenues earned by a business and the costs of operating the business |
| Scarcity | Occurs when people's needs and wants are unlimited and the resources to produce the goods and services to meet those needs and wants are limited |
| Security Need | Examples include physical safety and economic security |
| Self-Actualization Need | The realization of your potential |
| Social Need | Examples include friends, love, belonging |
| Specialization | Occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive |
| Supply | The quantity of a good or service a producer is willing to produce at different prices |
| Variable Costs | Costs that go up and down depending on the quantity of the good or service produced |
| Traditional Economy | When goods and services are produced the way they have always been produced |
| Wants | Those things that a person thinks he or she must have in order to be satisfied |
| Supply and Demand | An economic concept that states that the price of a good rises and falls depending on how many people want it and depending on how much of the good is available |
| Trade Off | Giving up one thing for another |
