Basic Economic Vocabulary

Front

Having a limited quantity of resources to meet unlimited wants.

Back

Scarcity

Front

The cost of what you have to give up when making a choice.

Back

Opportunity cost

Front

Desire for a particular good or service.

Back

demand

Front

Amount of a good or service that is available for use.

Back

supply

Front

Person or business that makes and sells products

Back

producer

Front

Person or business that buys or consumes products.

Back

consumer

Front

Factor that encourages people to behave in a certain way.

Back

incentive

Front

Act of concentrating on a limited number of goods or activities.

Back

specialization

Front

Decline in economic growth for six or more months in a row.

Back

recession

Front

General increase in prices.

Back

inflation