Key Terms

the fundamental economic problem of having limited resources to meet unlimited wants and needs

study of how people and societies use limited resources to satisfy their needs and wants

the value of the next best alternative forgone when a decision is made

the relationship between the availability of a good (supply) and the desire for it (demand), which determines price

an economic system where decisions about production, investment, and distribution are driven by market forces and prices

the rate at which the general level of prices for goods and services rises, reducing purchasing power

the total monetary value of all goods and services produced within a country's borders over a specific period

a market structure where a single firm dominates and controls the supply of a good or service

government decisions about spending and taxation to influence the economy

situation where no individual would be better off doing something different

factors that motivate individuals and businesses to make decisions in their best interest, such as profits, wages, or taxes

people should be free

work is good

don't steal

don't covet

honest measures

trade is good

love your neighbor as yourself

take care of widows and orphans

be a good samaritan

honor those in power

a system that requires absolute obedience to rulers of a society

an economic system based on private ownership of the factors of production

a system in which the society's leaders make all economic decisions

a type of economic system where the government controls all aspects of the economy

type of command where there is no private ownership of property and little to no political freedoms

the effort of two or more people, acting independently, to get the business of others by offering the best deals

the way a society uses its resources to satisfy its people's unlimited wants

any place or situation in which people buy and sell goods and services

an economic system that has elements of traditional, command, and market economies

the rights of individuals and groups to own property

type of command economy where government owns some or all of the factors of production

a situation in which people concentrate their efforts on the areas in which they have an advantage

economic system where families, clans, or tribes make economic decisions based on customs and beliefs

limited government involvement in the economy