The Market Economy Review Word Bank
capitalist supply consumer demand command economy

opportunity cost producer scarcity innovation incentive

profit

A is someone who buys goods and services.

A makes goods or offers services to others.

The United States has a market economy, which is also known as a economy.

The financial gain received by selling something for more than it costs to make is called .

Producers are motivated by the profits they expect to make from the goods or services they offer. Their to produce, the thing that motivates them, is the idea that consumers will want or need what they are offering.

Competition between producers leads to , which is the process of developing newer, better things.

The cycle of ups and downs in the market depends on , the amount of something, and , the number of consumers who want it.

The benefit you give up by choosing to do one thing instead of another is called .

The need to choose one thing over another exists because of , the limited amount of resources available.

The opposite of the market economy is the , where the government decides what will be produced, how much will be produced, and how much goods and services will cost.