Chapter 1 Study Guide Flashcards
Economic decision making
The process of choosing which needs and wants will be satisfied.
Producers
Individuals and organizations that determine what products and services will be available for sale.
Economic system
The method a country uses to answer the three economic questions.
Economic resources
Things available to be used to produce goods and services.
Needs
Things that are required in order to live.
Scarcity
Not having enough resources to satisfy every need.
Supply
The quantity of a good or service that businesses are willing and able to provide.
Consumer
A person who buys and uses goods and services.
Command economy
And economy in which resources are owned and controlled by the government.
Goods
Things you can see and touch; they are products you can purchase to meet your wants and needs.
Capitalism
The private ownership of economic resources by individuals rather than by the government.
Traditional economy
An economy in which goods and services are produced the way they have always have been produced. It is used in countries that are less developed and are not yet participating in the global economy.
Mixed economy
An economy that combines elements of the command and market economies.
Demand
The quantity of a good or service that consumers are willing and able to buy.
