Economics Vocabulary

The inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made.

• Scarcity
• Choice
• Cost
• Demand

factors of production that are used in the production of goods and services

• Resources
• Supply
• Demand
• Price

Materials/substances such as minerals, water, forests, and fertile land that occur in nature and can be used for economic gain.

• Human Resources
• Capital Resources
• Natural Resources
• Unlimited Resources

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

• Capital Resources
• Unlimited Resources
• Human Resources
• Natural Resources

goods produced by man made and used to create other goods and services

• Human Resources
• Capital Resources
• Natural Resources
• Unlimited Resources

selection of an item or action from a set of possible alternatives. Individuals must choose because goods and services are limited.

• Supply
• Demand
• Choice
• Production

What is GIVEN UP when a choice is made. Individuals must consider the value of what is given up when making a choice.

• Price
• Production
• Supply
• Opportunity Cost

The amount of money exchanged for a good or service. Interaction of supply and demand determines this. It determines who can buy goods & services.

• Price
• Supply
• Demand
• Opportunity Cost