Economic Concepts

Front

Scarcity

Back

Resources are limited compared to people's wants and needs. We must make choices on how to use what we have.

Front

Resources

Back

The things needed to produce goods and services, called the factors of production: human, natural, capital, and entrepreneurship.

Front

Choice

Back

Picking from others. Scarcity requires us to make choices.

Front

Opportunity Cost

Back

Scarce resources are used for one purpose instead of the next best purpose.

Front

Price

Back

How much the consumer is willing to pay.

Front

Incentives

Back

Something that motivates someone. Example: buy one get one free sales.

Front

Supply and Demand

Back

Determines price.

Front

Supply

Back

The amount of a product or resource that the producer is willing and able to make.

Front

Demand

Back

The amount of a product or resource that the consumer is willing and able to buy.

Front

Production

Back

The combining of human, natural, capital, and entrepreneurship resources.