Fundamentals of Economics Vocab 2

Front

The inability to satisfy all wants at the same time. All resources and goods are limited. Limited goods and resources require that choices be made.

Back

scarcity

Front

Factors of production that come from the earth and are used in the production of goods and services

Back

natural resources

Front

selection of an item or action from a set of possible alternatives

Back

choice

Front

What is given up when a choice is made (the second-best alternative)?

Back

opportunity cost

Front

the using of goods and services

Back

consumption

Front

Based on supply and demand with little or no government control

Back

Free market economy

Front

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

Back

command economy

Front

an economic system combining private and public enterprise

Back

mixed economy

Front

A person who takes a risk to produce and sell goods and services in search of profit

Back

entrepreneur

Front

What is a disadvantage of a market economy?

Back

It can lead to economic inequalities.