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Economic Decision Systems

Terms

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Economic decision-making
process of choosing which wants, amount several options,will be satisfied.
needs
thing that are required in order to live
Goods
things that you can see and touch.
Mixed economy
combines elements of the conmand and market economies.
Scarcity
The basic economic problem result
Economic resources
the means through which good and services are produced.
Supply
refers quantity of good or services that business are willing and able to provide
Traditional economy
good and services are produced the way it has always been done.
Capitalism
refers to the private ownership of resources by individuals
tradeoff
when you give up something else
Producers
individuals and organizations that determine what products and services will be available for sale.
Market price
point where supply and demand are equal.
Wants
Things that add comfort and pleasure to your life
Services
activities that are consumed at the same time they are produced.
Consumer
a person who buys and uses good and services.
Command Economy
the resources are owned and controlled by the goverment.
Opportunity cost
the value of the next-best alternative that you did not choose.
Economic System
nation's plan for answering the three economic questions.
Market Economy
The resources are owned and controlled by the people of the controlled

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