Chapter 1 - Economic Decisions & Systems

A person who buys and uses goods and services is called a consumer.

Goods and services are purchased by businesses as well as by individuals.

Buildings, equipment, and supplies are examples of natural resources.

Communism refers to the private ownership of resources by individuals rather than by the government.

. The basic economic problem results from not having enough resources to satisfy every need.

Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs.

The final step in the decision-making process is to select the best choice from among the alternatives.

All economic resources have a limited supply.

The basic economic problem is the mismatch of unlimited wants and needs and limited economic resources.

In every nation on Earth,