Module 5 Study Guide

System of producing, selling, and buying goods and services

• Economy

• Scarcity

• Bartering

• Trading

Problem of having unlimited human wants in a world of limited resources

• Economy

• Scarcity

• Bartering

• Trading

For every choice you make, you give up something else.

• Economy

• Scarcity

• Opportunity Cost

• Trading

The amount of a good or service that businesses are willing and able to produce.

• Supply

• Demand

• Opportunity Cost

• Profit

The desire to have a good or service and the number of people who are ready to buy it at a certain price.

• Supply

• Demand

• Opportunity Cost

• Profit

Money an individual or business has left after paying expenses

• Supply

• Demand

• Opportunity Cost

• Profit

Basic economic resources needed to produce goods and services

• Factors of Production

• Contraction

• Expansion

• Economic Interdependence

Problem that can occur when a factor of production is in short supply

• Factors of Production

• Contraction

• Expansion

• Economic Interdependence

Benefit that can happen when a factor of production is increased

• Factors of Production

• Contraction

• Expansion

• Economic Interdependence

System in which one nation depends on another to provide goods and services it does not produce

• Factors of Production

• Contraction

• Expansion

• Economic Interdependence