Foundations of Economics Vocabulary

The state of being in short supply or a shortage

• Opportunity Cost
• Consumption
• Price
• Scarcity

A benefit, profit, or value of something that must be given up to acquire or achieve something else

• Production
• Opportunity Cost
• Supply
• Scarcity

Something that is found in nature and can be used by people

• Natural Resource 
• Human Resource
• Capital Resource

Set of individuals who make up the workforce of an organization, business sector, or economy

• Natural Resource
• Capital Resource
• Human Resource

Goods produced and used to make other goods and services

• Human Resources
• Natural Resources
• Capital Resources 

Process of designing, launching, and running a new business

• Consumption
• Entrepreneurship
• Opportunity Cost
• Price

Process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption

• Consumption
• Production
• Opportunity Cost
• Supply

The act or process of using up something (such as food or coal)

• Consumption
• Incentives 
• Scarcity
• Price

Something that motivates an individual to perform an action

• Supply
• Demand
• Incentive 
• Price

Economic principle that describes a consumer's desire and willingness to pay a price for a specific good or service

• Supply
• Demand
• Choices
• Opportunity Cost