| A | B |
|---|
| Scarcity | The inability to satisfy all wants at the same time because resources and goods are limited |
| Resources | Anything used in the production of goods and services |
| Choice | Selecting an item or action from a set of possible alternatives |
| Price | The amount of money exchanged for goods or services |
| Opportunity Cost | What is given up when a choice is made |
| Incentives | Things that motivate or encourage an individual toward an action |
| Supply | The amount of a good or service that producers are willing and able to sell at a certain price |
| Demand | The amount of a good or service that consumers are willing and able to buy at a certain price |
| Production | The combining of human, natural, and capital resources to make good or provide services |
| Profit | Earnings after all expenses have been paid |
| Mixed economy | Individuals and the government share in the decision-making process for the economy |
| Command economy | The government decides what products to make, how many to make,how to make them, and who gets them |
| Free market | Individual consumers make basic economic decisions based on supply and demand |
| Private property | Anything that is owned by an individual or business |
| Consumption | Buying and using goods and services |
| Competition | Rivalry between producers and sellers because more than one individual or business produces a similar product |
| Communism | A system in which the government owns all land, businesses, and resources |
| Consumer sovereignty | Customer preference and price determine what is purchased |
