Chapter 1: Economic Decisions and Systems

Things that are required in order to live

• needs

• wants

• chocolate

• luxuries

Things available to be used to produce goods and services

• goods

• market price

• demand

• economic resources

The method a country uses to answer the three economic questions

• economic system

• captilism

• market price

• trade-off

Process of choosing which needs and wants will be satisfied

• wants

• needs

• economic decision making

• economic resources

Not having enough resources to satisfy every need

• needs

• wants

• scarcity

• luxuries

Quantity of a good or service that businesses are willing and able to provide

• demand

• supply

• scarcity

• wants

Person who buys and uses goods and services

• consumer

• producer

• manager

• entrepreneur

Economy in which resources are owned and controlled by the government

• capitalism

• traditional economy

• command economy

• mixed economy

Private ownership of resources by individuals rather than by the government

• market economy

• mixed economy

• command economy

• capitalism

Point where supply and demand are equal

• supply

• demand

• trade-off

• market price