Economic Terms

Lack of resources to satisfy all wants. Forces people to make choices.

• Incentives
• Scarcity 
• Supply 
• Demand 

Selecting an item or action from a set of alternatives. 

• Price
• Choice
• Supply
• Profit 

The value of what is given up when a choice is made. Buying a Pepsi instead of a candy bar. The candy bar is called the-

• Capital 
• Resources 
• Opportunity Cost
• Demand 

Materials used in the production of goods. Natural, Human, and Capital are examples.

• Resources 
• Goods
• Supply
• Profit 

The amount of money exchanged for a product. It's determined by supply and demand.

• Resources
• Opportunity Cost
• Price
• Consumption 

Using goods and services is called-

• Production
• Consumption 

Combing resources to make goods and services is called-

• consumption 
• production 

Deals used to motivate buyers. 50% off, coupons, etc.

• incentives
• supply
• price
• consumer sovereignty 

The number of items a seller has. 

• Supply
• Demand 

The desire and ability to purchase products. 

• supply
• demand