Capitalism - the private ownership of economic resources by individuals rather than by the government.

Command Economy - an economy in which resources are owned and controlled by the government.

Consumer - a person who buys and uses goods and services.

Demand - the quantity of a good or service that consumers are willing and able to buy.

Economic decision making - the process of choosing which needs and wants will be satisfied.

Economic resources - things available to be used to produce goods and services.

Economic system - the method a country uses to answer the three economic questions.

Good - things you can see and touch; products you can purchase to meet your wants and needs.

Market economy - an economy in which the resources are owned and controlled by the people of the country.

Market price - the point where supply and demand are equal.

Mixed economy - an economy that combines elements of the command and market economies.

Needs - things that are required in order to live.

Opportunity cost - the value of the next-best alternative that you were not able to choose.

Producers - individuals and organizations that determine what products and services will be available for sale.

Scarcity - not having enough resources to satisfy every need.

Service - activities provided for the satisfaction of others that are consumed at the same time they are produced.

Supply - the quantity of a good or service that businesses are willing and able to provide.

Trade off - what you make when you give something up to have something else.

Traditional economy - an economy in which goods and services are produced the way they have always been produced.
It is used in countries that are less developed and are not yet participating in the global economy.

Wants - things that add comfort and pleasure to your life.