Unit 1 Vocabulary

Front

economic system characterized by private ownership of businesses operated for profit with economic freedom for both consumers and producers

Back

free enterprise system

Front

condition in which there are not enough resources available to produce everything that individuals demand

Back

scarcity

Front

the value of goods and services that are given up in order to obtain an alternative good or service

Back

opportunity cost

Front

the resources needed to produce goods and services, including land, labor, capital, and entrepreneurship

Back

factors of production

Front

supplies of something of value

Back

resources

Front

process created to manage the production, consumption, and distribution of goods and services

Back

economic system

Front

a visual representation showing the relationship between the factor market and the product market

Back

circular flow model

Front

an act of selecting or making a decision when faced with two or more possibilities.

Back

choice

Front

the struggle among producers for the dollars of consumers.

Back

competition

Front

organizations or businesses.

Back

firms