| A | B |
|---|
| scarcity | The shortage of economic resources. |
| factors of production | The economic resources used to produce goods and services. |
| natural resources | The raw materials found in nature. |
| human resources | The knowledge, efforts, and skills people bring to their work, also called labor. |
| capital resources | Things such as buildings, materials, and equipment used to produce goods and services. |
| entrepreneurial resources | The initiative to improve goods and services or create new ones. |
| economics | The study of how society chooses to use resources to produce and distribute goods and services for people's consumption. |
| market economy | A system in which economic decisions are made in the marketplace according to the laws of supply and demand. |
| demand | The amount of goods and services that consumers are willing to buy at various prices. |
| supply | The amount of goods and services that producers will provide at various prices. |
| equilibrium supply | The price at which the amounts of good producers supply meets the amount of goods consumers demand. |
| command economy | A system in which a central authority figure such as the state makes the key economic decisions. |
| mixed economy | A combination of a command and a market economy. |
