CE.11 and 12 Key terms

the inability to satisfy all wants at the same time.

• production

• demand

• scarcity

• resources

factors of production that are used in the production of goods and services.

• consumption

• resources

• profit motive

• competition

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

• choice

• opportunity cost

• supply

• production

what is given up when a choice is made

• consumption

• choice

• scarcity

• opportunity cost

the combining of human, natural, capital, and entrepreneurship resources

to make goods or provide services.

• consumption

• production

• scarcity

• competition

the using of goods and services.

• production

• resources

• choice

• consumption

type of economy when decisions are based on custom and historical precedent

and people often perform the same type of work as their parents and grandparents.

• free market

• traditional

• command

• mixed

type of economy based on private ownership of property, profit motive,

competition, consumer sovereignty, individual choice, and minimal government

involvement.

• traditional

• free market

• command

• mixed

type of economy based on central ownership (government) of property

and resources, centrally planned economy, and lack of consumer choice.

• traditional

• free market

• command

• mixed

type of economy based on individuals and businesses are owners and decision

makers for private sector and government is owner and decision maker for public sector.

• traditional

• free market

• command

• mixed