20
Reading for
Meaning
Before reading the chapter, scan the
vocabulary list for words you can
defi ne. Based on your defi nitions,
predict the content of this chapter.
Review your predictions after reading
the material.
What Is Economics? What Is Economics?
needs
wants
goods
services
economic system
traditional economy
market economy
free enterprise
system
consumer
producer
marketplace
command economy
mixed economy
resources
scarcity
nonhuman resource
human resource
trade-off
opportunity cost
profi t
innovation
technology
supply
demand
1
After studying this chapter,
you will be able to

distinguish between needs and wants.

compare different types of economic systems.

defi ne scarcity in terms of needs and wants.

analyze a decision in terms of trade-offs and
opportunity cost.

explain the role of the profi t motive in the
economic system of the U.S.

evaluate how competition among producers
infl uences the price of goods in a market
economy.

interpret the relationship between supply
and demand.
Previous Page Next Page