| Term | Definition |
|---|
| Scarcity | Little amounts of a good or service. |
| Resource Allocation | A way to distribute resources. |
| Land | The environmental (natural) resources |
| Capital | Physical improvement resource (what goes into making a product better) |
| Market System | Most often used by democratic societies where resources are distributed by the demands of the people. |
| Developed Countries | Countries that have many industries and advanced technology. |
| Labor | Human resource (work force) |
| Consumers | People who buy and use products |
| Planned System | Often used by communist countries. The government controls prices and products. |
| Developing Countries | Countries that have few industries, simple technology, and cannot survive without the help from other countries. |
| Entrepreneurship | Risk taking resource (people who invest into the product in hopes of it being successful. |
| Tradition | A resource allocation method that distributes the resources the same way year after year. |
| Random Selection | Everyone has an equal chance of getting the resource but it is by luck whoever receives the resource |
| Need | Those who are the neediest get the resource |
| Brute Force | The strongest, quickest, smartest, and fastest get the resource |
| Fair Market Price | An amount at which a producer is willing to sell a product and a consumer is willing to buy it. |
| Queing | People get the resource on a first come, first serve basis. |
| Opportunity Cost | A decision that involves a trade-off for the producer |
| Mixed Economy | The government may own some industries but others belong to private owners |
| Free Market Economy | Producers can compete freely with one another to gain as many consumers they can. This is called capitalism. |
| Public Sector | A good or service that is available to everyone even if the person cannot pay. |
| Private Sector | Provides a good or service that a person cannot use unless he/she pays for it. |
| Multinational Corporation | A business that has operations all over the world. |
| Globalization | When money, goods, services, and people can move freely across national borders. |
| Economic Interdependence | When countries have a strong economic tie with one another and depend on each other for resources, technology, trade, and investment |
| Free trade | When goods and services flow across country borders with little or no government involvement |
| Interdependent | When countries rely on one another for resources and depend on each other to get the things they want or need. |
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