The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources. It forces choices to be made.

The value of the next best alternative forgone when making a choice.

Land, labor, capital, and entrepreneurship.

All natural resources used in production, including minerals, forests, water, and land itself.

The human effort, both physical and mental, used in production.

Man-made resources used in production, such as machinery, tools, and factories.

The ability to combine land, labor, and capital to create goods and services; involves risk-taking and innovation.

An economic system where decisions about production and consumption are made by individuals and businesses based on supply and demand.

An economic system where the government makes decisions about production and consumption.

An economic system that combines elements of market and command economies.

The amount of a good or service that producers are willing and able to offer at a given price.

The amount of a good or service that consumers are willing and able to buy at a given price.

As price increases, quantity supplied increases; as price decreases, quantity supplied decreases.

As price increases, quantity demanded decreases; as price decreases, quantity demanded increases.

The point where supply and demand intersect; the price and quantity at which the market clears.

A situation where quantity supplied exceeds quantity demanded.

A situation where quantity demanded exceeds quantity supplied.

Government-imposed restrictions on prices, such as price ceilings and price floors.

A maximum legal price that can be charged for a good or service.

A minimum legal price that can be charged for a good or service.

A general increase in the price level of goods and services in an economy over a period of time.

A general decrease in the price level of goods and services in an economy over a period of time.

The total value of goods and services produced within a country's borders in a specific time period.

The state of being without a job, actively seeking employment.

An increase in the production of goods and services in an economy over time.

A significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Government policy that attempts to influence the economy through government spending and taxation.

Government policy that attempts to influence the economy through changes in the money supply and interest rates.

The exchange of goods and services between countries.

The increasing interconnectedness and interdependence of countries through trade, technology, and cultural exchange.