Introduction to Economics Vocab Quiz

Wants: Desires that can be satisfied by consuming a good or service

Economics: The study of how people seek to satisfy their needs and wants by making choices

Resources: a thing that can be used- natural resources labor, capital, - to make goods or services

Scarcity: the situation of not having enough resources to satisfy all one's wants

economic system: a nation's way of producing things its people want and need

Traditional Economy: An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.

market economy: an economic system in which individuals and businesses own all resources and make economic decisions on the basis of price

command economy: An economic system in which the government makes all economic decisions.

mixed market economy: a market economy that has elements of command and tradition

Trade-off: an alternative that we sacrifice when we make a decision