| Term | Definition |
|---|
| scarcity | The shortage of economic resources |
| factors of production | The economic resources used to produce goods and services |
| natural resources | Raw materials found in nature used to produce goods |
| human resources | The knowledge, efforts, and skills people bring to their work, also called labor |
| capital resources | Things such as buildings, materials, and equipment used to produce goods and services |
| entrepreneurial resources | The initiative to improve goods and services or create new ones |
| economics | The study of how society chooses to use resources to produce and distribute goods and services for people's consumption |
| market economy | A system in which economic decisions are made in the marketplace according to the laws of supply and demand |
| demand | The amount of goods and services that consumers are willing to buy at various prices |
| supply | The amount of goods and services that producers will provide at various prices |
| equilibrium price | The price at which the amount of goods producers supplyh meets the amount of goods consumers demand |
| command economy | A system in which a central authority such as the state makes the key economic decisions |
| mixed economy | A combination of a command and a market economy |
Combine with other sets
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