| A | B |
|---|
| economy | the way a nation makes economic choices |
| economic resources/factors of production | all things used in producing goods and services; land, labor, capital, entrepreneurship |
| infrastructure | refers to the physical development of a country - to the state of its roads, ports, sanitation facilities, and utilities |
| scarcity | the difference between wants and needs and the available resources; it forces everyone-people, nations, and businesses - to make economic choices |
| land | everything on the earth that is in its natural state |
| labor | refers to all the people (human factor) who work in an economy |
| capital | the monet needed to start and operate a business; also includes goods used in the production process (buildings, equipment, etc.) |
| entrpreneurship | the skills of people who are willing to risk their time and money to run a business |
| market economy | the government lets the market answer the three basic economic questions |
| command economy | the government answers the three basic economic questions |
| capitalism | a system charactorized by private ownership of business and marketplace competition |
| socialist | have a democratic form of government , but, increased government involvement in people's lives |
| communist | totalitarian form of government |
| privatization | the process of selling government owned businesses to private individuals |
| productivity | is output per worker hour |
| gross domestic product (GDP) | a measure of the goods and services produced using labor and property located in this country |
| gross national product (GNP) | a measure of goods and services produced by US citizens here and abroad |
| standard of living | measurement of the amount of goods and services that a nation's people have |
| inflation | refers to rising prices |
| consumer price index (CPI) | measures the change in price over a period of time of some 400 specific goods and services |
| business cycle | recurring changes in the economy |
