| A | B |
|---|
| Traditional Economy | When Economic decisions are made according to long established ways of beaving |
| Mixed Economy | A mixture of the three basic economic systems |
| Market Economy | System where individuals make their own choices about productuion and consumption |
| Command Economy | when |
| Oportunity Cost | The benifit given up when scarce resources are used for one purpose instead of another |
| Consumption | The act of buying or using goods or services |
| Profit | THe difference between what it costs to produce something and what it makes back |
| Factors of Production | The resources people have for producing goods and services |
| Scarcity | When resources are limited compared to the wants people have |
| Capital | Anything produced in an economy that is used to produce other goods and services |
