Economics Vocabulary

A command economy has

In a traditional economy

Given up when a choice is made

Amount of a good or service that producers and willing and able to sell

Amount of money exchanged for a good/service, interaction of supply and demand determines price

Amount of a good or service that consumers are willing and able to buy

Interaction of these determine price

Using of goods and services, preferences and price determine what is purchased and consumed

Combining of human, natural, capital, and entrepreneurship to make goods or to provide services

Selecting an item or action from set of possible alternatives

Things that incite or motivate to change economic behavior

Inability to satisfy all wants and needs at the same time, all resources and goods are limited

Person who takes risk to produce goods and services in search of a profit

Used in the production of goods and services, include natural, human, capital, entrepreneurship