Chapter 1 Vocabulary Review

are things that you can see and touch, purchase

• wants

• goods

• services

• needs

are provided for the satisfaction of others that are consumed at the same time they are produced

• services

• goods

• wants

• needs

are things available to be used to produce goods and services

• human resources

• natural resources

• capital resources

• all of the above

not having enough resources to satisfy every need is known as scarcity

• True

• False

process of choosing which needs and wants will be satisfied

• trade-off

• economic decision making

• opportunity cost

• scarcity

The value of the next best alternative that you were not able to choose is known as opportunity cost

• True

• False

the method a country uses to answer the the three economic questions.

• thinking

• technology

• economic system

• process

Capitalism refers to the private ownership of economic resources by individuals, rather than the government

• True

• False

_________ is a person who buys and uses goods and services

• customer

• producer

• consumer

• competition

are individuals and organizations that determine what products and services will be available for sale

• consumers

• producers

• competition

• demand