Basic Economic Terms

The inability to satisfy all wants at the same time. Resources and goods are limited, so choices must be made.

• production

• consumption

• scarcity

• price

Things that come from nature used to produce goods and other services.

• natural resources

• human resources

• capital resources

• entrepreneurship

The using of goods and services

• choice

• consumption

• incentives

• resources

The tools, man-made objects or money used in the production of goods and services

• human resources

• capital resources

• natural resources

• entrepreneurship

What is given up when a choice is made. The highest valued alternative not chosen.

• entrepreneurship

• choice

• scarcity

• opportunity cost

The people that make or sell goods or provide services.

• capital resources

• human resources

• natural resources

• entrepreneurship

The ability to create and manage a business. A willingness to take risks to make money.

• entrepreneurship

• capital

• production

• consumption

The combining of human, natural, capital resources and entrepreneurship to make goods or provide services.

• consumption

• opportunity cost

• production

• incentive

Factors of production that are used in the making of goods and services

• scarcity

• choice

• incentives

• resources

Selection of an item or action from a set of possible alternatives.

• production

• resources

• choice

• consumption