| A | B |
|---|
| Economics | study of how people's needs and wants are taken care of by their own efforts to earn a living; how countries use resources to provide goods and services |
| Goods | products that people buy or sell |
| Services | kinds of work that help people |
| Free Enterprise System | individuals decide what they want to buy or what type of job to look for |
| Consumers | individuals who use goods and services |
| Producers | individuals who sell goods and services |
| Entrepreneurs | people who own and operate businesses |
| Supply | the amount of good/services mae available to consumers |
| Demand | the amount of goods or services that consumers are willing to buy |
| Competition | rivalry among businesses for the consumer's money |
| Opportunity Cost | highest value alternative that must be given up when another option is chosen |
| Capital | the money needed to produce goods and provide services |
| Scarcity | not enough goods or services to satisfy all the wants of the people |
| Communism | an economic and government system in which there is no private property; the state owns everything |
| Adam Smith | known as the "Father of Modern Economics"; Established a new economics system in which businesses would operate without government control |
| "laissez-faire" | an economics approach in which government does not interfere with businesses |
| Karl Marx | believed in an economic system where all property would be jointly owned; everyone would be equal in power and wealth |
| Price | amount of money exchanged for a good/service. Determined by interaction of supply and demand |
| Choice | selecting an item or action from a set of possible alternatives |
| Incentives | things that incite or motivate- used to change economic behavior |
| Credit Union | member owned financial institutions |
| Currency | paper money and coins in circulation in a nation that makes up its money supply |
| Interest | financial return gained by investing; money the borrower pays the bank in return for a loan |
| Securities | stocks or bonds |
| Savings | a type of bank account for savings |
| Stock Market | the business transacted at a stock exchange |
| Investment | purchase of something with value with the expectation that over time it will increase in value |
| Bank | privately-owned, profit making financial institution |
| Money | any item, specifically currency, that is accepted in exchange for goods/services |
| Deposit | put money in a bank/financial account |
| Loans | Sum of money lent to an individual/business that is paid back with interest |
