Chapter 1 Vocabulary

Materials and people used to create goods and services

• entrepreneurs

• natural resources

• productive resources

People who start businesses to provide goods and services

• Entrepreneurs

• capital goods

• productive resources

What you give up as the result of a decision you make

• cost

• benefit

• scarcity

What you give up in order to get what you choose

• opportunity cost

• productive resources

• scarcity

A relationship in which each member of a group relies on the other members for something they need

• Interdependence

• productive resources

• scarcity

The rate at which goods are produced or work is completed

• capital goods

• productivity

• standard of living

The result of unlimited wants and limited resources

• scarcity

• natural resources

• benefit

Productive resources supplied by nature

• capital goods

• natural resources

• entrepreneurs

Deciding how to use productive resources

• economic decision

• cost

• scarcity

Human made materials needed to produce goods and services

• capital goods

• human resources

• entrepreneurs