Introduction to Economics Vocabulary

2. A condition that occurs because people’s wants and needs are unlimited. While the resources needed to produce goods and services to meet the wants and needs of consumers are limited.
5. In a __________ economy the government controls what is produced, how it is produced, and how goods are distributed.
6. The global ______ describes the buying and selling of goods and services between countries around the world.
7. The branch of economics that studies the overall performance and behavior of an economy as a whole.
8. The cost or value of the next best alternative that must be given up when a choice is made.
10. Human __________________ describes the skills, education, and abilities that the working population have and use to produce goods and services.
11. In a __________ economy decisions about production and prices are made by individuals and businesses through buying and selling.
12. In a _______________ economy the system combines elements of both a market economy and a command economy.

1. The branch of economics that focuses on the behavior of individuals, households, and businesses.
3. The study of how people and societies make choices about the use of the limited resources available to satisfy the wants and needs of the population.
4. In a ________________ economy the economic system is based on customs, traditions, and long-standing practices.
9. The relationship between how much of a good or service is available and how much people want it, which helps determine price.