Basic Economic Terms

Front

The inability to satisfy all wants at the same time. Resources and goods are limited, so choices must be made.

Back

scarcity

Front

Things that come from nature used to produce goods and other services.

Back

natural resources

Front

The using of goods and services

Back

consumption

Front

The tools, man-made objects or money used in the production of goods and services

Back

capital resources

Front

What is given up when a choice is made? The highest valued alternative not chosen.

Back

opportunity cost

Front

The people that make or sell goods or provide services.

Back

human resources

Front

The ability to create and manage a business. A willingness to take risks to make money.

Back

entrepreneurship

Front

The combining of human, natural, capital resources and entrepreneurship to make goods or provide services.

Back

production

Front

Factors of production that are used in the making of goods and services

Back

resources

Front

Selection of an item or action from a set of possible alternatives.

Back

choice