| A | B |
|---|
| Wants | are things we wish we could have |
| Needs | things we must have to survive |
| Goods | can be physically weighed or measured |
| Services | are tasks that people or machines perform |
| Economic Resources | is anything that people can use to make or obtain what they need or want (also known as factors of production) |
| Natural Resources | raw materials supplied by nature |
| Human Resources | People who produces goods and services |
| Entrepreneur | The risk taker who used resourcs ro create a new product or service |
| Capital Resources | the products and money used in the production of goods and services |
| Scarcity | not having enough resources to satisfy every need |
| Economic decision making | the process of choosing which needs and wants will be satisfied |
| Trade-off | when you give up something to have something else |
| Opportunity cost | the value of the next best alterantive that you were not able to choose |
| The Decision making process | 1) define the problem 2) idnetify the choices 3) evaluate the adv and disadv 4) choose the best alternative 5) act on your choice 6) review your decision |
| 3 economic questions | What goods will be produced? How will the goods and services be produced? what needs and wants will be satisfied? |
| Economic system | the method a country uses to answer the three economic questions |
| Command Economy | the resources are owned and controlled by the governement |
| Market Economy | the resources are cowned and controlled by the people of the country |
| Traditional Economy | Goods and services are produced the way it has always been done |
| Mixed Economy | Combines elements of the command economy and the market economies |
| Capitalism | another name for the US economy, refers to the private ownership of economic resources by individuals rather than by the government |
| Profit | the money left from sales after all expenses have been paid |
| Competition | rivalry among businesses to sell their goods and services |
| Consumer | a person who buys and uses goods and services |
| Producers | individuals and organizations that determine what products and services will be available for sale |
| Demand | the quantity of goods and service that consumers are willing and able to buy |
| Supply | the quantity of goods and services that producers are willing and able to provide |
| Market Price | the point where supply and demand are equal |
