Economics Vocabulary Worksheet

Front

Scarcity

Back

When resources are limited but wants are unlimited, forcing people to make choices.

Front

Trade-offs

Back

Giving up one option in order to gain another.

Front

Opportunity Cost

Back

The value of the next best alternative that you give up when making a decision.

Front

Factors of Production

Back

The resources needed to produce goods and services: land, labor, capital, and entrepreneurship.

Front

Natural Resource

Back

Things found in nature used to produce goods and services (land, water, minerals).

Front

Human Resources

Back

Workers’ skills, knowledge, and effort used to produce goods and services.

Front

Physical Capital

Back

Man-made tools, machines, and buildings used to make goods and services.

Front

Entrepreneurship

Back

People who combine resources, take risks, and create businesses.

Front

Profit

Back

The money a business makes after all costs are paid.

Front

Innovation

Back

Creating new ideas, products, or methods that improve efficiency or quality.