Topic 1.6 Economics Basics

The study of how people meet their wants and needs.

• economics

• opportunity costs

• principle

• demand

The cost of what you have to give up in order to get what you want or need.

• minimum

• economics

• opportunity costs

• producers

The desire for a certain good or service.

• opportunity costs

• supply

• want

• demand

The ability and willingness to produce a good or service.

• opportunity costs

• demand

• producer

• supply

People or businesses that make and sell goods or services.

• consumers

• producers

• supply

• demand

People or businesses that buy, or consume, goods and services.

• producers

• supply

• consumers

• demand

The lowest level acceptable.

• minimum

• principle

• opportunity costs

• economics

The basic value of something.

• opportunity costs

• principle

• supply

• minimum

Producers and consumers have choices, the government has a role but it is limited.

• command

• mixed

• market

• traditional

Economy is based on cultural beliefs and customs, small farming and trading communities.

• command

• mixed

• market

• traditional