| A | B |
|---|
| Free enterprise | A system under which business can be conducted freely with little government intervention. |
| Private property | Goods that are owned by individuals and businesses rather than the government. |
| Contracts | Individuals have the right to enter into agreements with one another to buy & sell goods and services. |
| Competition | Economic rivalry that exists among businesses selling the same or similar products. It encourages producers to improve what they produce. |
| Voluntary Exchange | When consumers and producers unconditionally purchase and sell products, and they believe the opportunity cost of such a trade is acceptable to both parties. |
| Income | The money paid to households by business firms and the government in exchange for the household’s resources. |
| Product market | Represents all the exchanges of goods and services in the economy. |
| Resource market | Represents the exchange of resources between households (natural, human and capital resources) and business firms and the government who are the users of the resources. |
