1. Economics Vocab 1

2. A type of economic system where the economic decisions are based on custom.
TRADITIONAL ECONOMY

3. A type of economic system with minimal government involvement; private individual ownership of property and resources
FREE MARKET ECONOMY

4. A type of economic system where individuals and businesses are owners and decision makers along with some government involvement
MIXED ECONOMY

5. By what we buy (purchase), we determine what goods and services will be produced
CONSUMER SOVEREIGNTY

6. A type of economic system where the government is in control
COMMAND ECONOMY

7. The study of how a society produces goods and services and how it uses scarce resources
ECONOMICS

8. The rivalry between producers or sellers of the same type of good or service
COMPETITION

9. Has one owner who takes ALL the risks and ALL the profits
PROPRIETORSHIP

10. The amount of money left after all expenses and bills have been paid
PROFIT

11. multiple owners share profits and each owner’s liability is based on how much each owner invests; Authorized by law to act as a legal entity
CORPORATION

12. CIRCULAR FLOW OF ECONOMY
The way in which resources, goods and services and money flow continuously among households, businesses and the government in the U.S. economy
CIRCULAR FLOW OF ECONOMY

13. Buyers will demand more products when they can buy them at lower prices
LAW OF DEMAND

14. Anything that goes into the making of a good or service
FACTORS OF PRODUCTION

15. a business owner and risk taker
ENTREPRENEUR

16. Using goods and services
CONSUMPTION

17. An example of a factor of production that includes land, water, soil, sun, plants, animals, etc.
NATURAL RESOURCES

18. The inability to satisfy all wants at the same time; the needs and wants are greater than the resources
SCARCITY

19. The amount of a good or service that producers are willing and able to sell at a certain price
SUPPLY

20. Has two or more owners who share risks and profits
PARTNERSHIP

21. Mechanism to decide who gets goods and services
Mechanism to decide who gets goods and services. The amount that satisfies both producers for profit and consumers for value
PRICE

22. An example of a factor of production that includes labor; workers and their time and energy
HUMAN RESOURCES

23. Something that spurs or motivates someone into action: sale, coupons, etc.
INCENTIVE

24. What is given up when a choice is made. The downside to your choice.
OPPORTUNITY COST

25. An example of a factor of production that includes tools, machinery, money, technology
CAPITAL RESOURCES

26. The amount of a good or service that consumers are willing and able to buy at a certain price
DEMAND

27. Selecting an item or action from a set of possible alternatives
CHOICE

28. Combining human, natural, capital, entrepreneurship resources to make goods and services
PRODUCTION

29. Businesses will provide more products when they can sell them at higher prices
LAW OF SUPPLY