B.E. Unit 1 Vocab 2.02

​

Capital Goods

Manufactured or constructed items used in the production of goods and services

Consumer Products

Products produced for personal consumption

Consumption

The process or activity of using goods and services; the economic process or activity of using goods and services.

Demand

The quantity of a good or service that buyers are ready
to buy at a given price at a particular time

Distribution

The economic process or
activity by which income is divided among resource owners and producers.

Economic Goods

Physical objects that are useful, scarce, and transferable and which satisfy economic wants.

Economic Resources

The human and natural
resources and capital goods
used to produce goods and services.

Economic Services

Productive acts that are useful, scarce, and
transferable and which satisfy economic wants.

Economic Want

A desire for something that
can only be satisfied by
spending money

Economics

The study of how to meet
unlimited, competing wants with limited resources

Elastic Demand

A form of demand for products in which changes in price correspond to changes in demand

Elasticity

An indication of how changes in price will affect changes in the amounts demanded and supplied.

Equilibrium

The point at which the
quantity supplied is equal to the quantity demanded.

Excess Demand

•The situation that exists when
demand is greater than
supply

Excess Supply

•The situation that exists when
supply is greater than
demand

Exchange

•The economic process of
trading one good or service
for another

Factors of Production

•Productive resources; human
and natural resources and
capital goods

Human Resources

•People who work to produce
goods and services

Industrial Products

•Products purchased by
producers for resale, to make
other goods and services,
and/or to use in business
operations

Inelastic Demand

•A form of demand in which
changes in price do not
affect demand

Law of Demand

•Economic principle which
states that the quantity of a
good or service that people
will buy varies inversely with
the price of the good or
service

Law of Supply

•Economic principle which
states that the quantity of a
good or service that will be
offered for sale varies in
direct relation to its price

Law of Supply and Demand

•Economic principle which
states that the supply of a
good or service will increase
when demand is great and
decrease when demand is
low

Natural Resources

•Items found in nature that
are used to produce goods