Economics Vocabulary

Economics Vocabulary

Economics

the study of how peoples needs and wants are taken care of by their own efforts to earn a living.

Resources

All things used in producing goods and services

Goods

Physical objects such as clothes or shoes

Services

Actions or activities that one person performs for another - cutting hair, landscaping, teaching information, or police protection are a few examples.

Free Enterprise System

Individuals can make many choices whether you are deciding what to buy, or what type of job to look for (you have freedom to choose)

Consumer

A person who purchases goods and services for personal use

Producer

A person, company, or country that makes, grows, or supplies goods for sale to consumers

Labor

Work force necessary for businesses to operate

Entrepreneur

A person who owns and operates their own business

Money

Anything people accept as payment.

High standard of living

A good and comfortable way of life

Need

Something you need in order to survive (food, water, clothing, shelter)

Wants

Something that people desire but is not needed in order to survive (boat, new video games, trampoline)

Supply

An amount of a product that is offered for sale.

Demand

The number of a product that consumers want to buy and the desire of the consumer to purchase the good or service.