Ch. 2 Lesson 2 Terms

Front

Capital

Back

Money and goods used to help people make or do things

Front

Entrepreneurship

Back

The act of running a business and taking on the risks of that business

Front

Supply

Back

The amount of a good or service that a producer wants to sell

Front

Demand

Back

The amount of a good or service that a consumer wants to buy

Front

Scarcity

Back

Lack of a resource

Front

Opportunity Cost

Back

What a person gives up when they choose to make or buy a product

Front

Traditional Economy

Back

An economic system in which custom decides what people do, make, buy, and sell

Front

Command Economy

Back

An economic system in which a central government decides what goods will be made

Front

Recession

Back

A period of slow economic growth or decline

Front

Inflation

Back

A rise in prices and a drop in the value of money