Basic Economics Vocabulary

Selecting an item or action from a set of possible alternatives

• choice

• anonymity

• similarity

Person who organizes, manages and assumes risk for a business

• captain

• entrepreneur

• chief operating officer

amount of money exchanged for a good or service

• competitor

• option

• price

Using goods or services

• labor

• consumption

• selectivity

things that motivate our economic behavior

• incentive

• commerce

• business

what is given up when a choice is made

• opportunity cost

• money

• risk

combining human, capital, and entrepreneurship to make goods and services

• distribution

• value

• production

The amount of a good or service that consumers are willing to buy at a certain price

• demand

• interaction

• availability

factors of production that are used in making goods and services

• preferences

• goods

• resources

the amount of a good or service that producers are willing to sell at a certain price

• alternatives

• mercantile production

• supply