Market Economy Vocab

Producers battling over who can make the most profit

• Market

• Competition

• Consumer

• Opportunity Cost

The limited amount of resources available

• Resource

• Competition

• Scarcity

• Cost

The reason you pay for a good.

• Cost

• Economy

• Market

• Producer

The number of consumers who want something.

• Supply

• Opportunity

• Resources

• Demand

The entire activity of buying and selling that takes place out in the world.

• External benefit

• Market

• Supply

• Competition

The benefit you give up by choosing to do one thing instead of another.

• Scarcity

• Consumer

• Market

• Opportunity Cost

The process of goods and services being produced and consumed is called

• Inflation

• Economy

• Consumer

• Opportunity

The amount of something that is available.

• Supply

• Producer

• Competition

• External Cost

A bad side effect imposed on a third party other than the buyer or seller of the good.

• Value

• External Cost

• Consumption

• Benefit

A good side effect enjoyed by a third party other than the buyer or seller of the good.

• Cost

• Value

• External Benefit

• Cost Benefit Analysis