Ch. 1 & 2 Economics Vocabulary

an economy in which production, investment, prices, and incomes are determined centrally by a government.

• Market Economy

• Command Economy

• Traditional Economy

• Non-traditional Economy

An economy is a system that relies on customs, history, and time-honored believes.

• Command Economy

• Market Economy

• Traditional Economy

• Non-traditional Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

• Command Economy

• Market Economy

• Traditional Economy

• Nontraditional Economy

The United States is an example of

• Command Economy

• Market Economy

Cuba is an example of a_______ economy.

• Command Economy

• Market Economy

What is essential for survival?

• Needs

• Wants

• Opportunity Cost

• Resource

something unnecessary but desired or items which increase the quality of living.

• Needs

• Wants

• Opportunity Cost

• Resource

the fact that budgeting inevitably involves sacrificing some of X to get more of Y.

• Needs

• Wants

• Opportunity Cost

• Trade-Off

the value of the next-best alternative when a decision is made; it's what is given up,”

• Needs

• Wants

• Opportunity Costs

• Trade-Off

Material resources.

• Non-human Resource

• Human Resource

• Consumer

• Producer