Economic System Review

__________ is a shortage of resources to satisfy the wants and needs of its people.

• scarcity
• drought

______________ ______ when the quantity demanded and the quantity supplied meet.

• equilibrium price
• balanced

__________ ____________ are raw materials found in nature.

• factors of production
• natural resources

Resources that can be reproduced.

• renewable resources
• nonrenewable resources

_____________: state owns major resources and makes key economic decisions, however, individuals may own some businesses.

• socialism
• communism

___________ ______________ are the knowledge, efforts, and skills people bring to their work.

• human resources
• capital resources

________ ____________ are things used to produce goods and services.

• human resources
• capital resources

Economics examines how we make _________.

• money
• choices

_____________ __________ entrepreneurs recognize the need for new goods and services.

• entrepreneurial resources
• big business

_________ __________: economic decisions are made in the marketplace according to the laws of supply and demand.

• command economy
• market economy