CH. 15 Economics Vocabulary

Desires that people have that can be met by getting a product or service.

• wants

• economics

• resources

• scarcity

Study of how people choose to use their limited resources to satisfy unlimited wants

• wants

• economics

• resources

• scarcity

All the things that can be used in making products or services that people want; 3 types -natural , labor, and capitol (money)

• wants

• economics

• resources

• scarcity

Occurs when we do not have enough resources to produce all of the things we would like to have.

• wants

• economics

• resources

• scarcity

An economic system in which individuals and businesses own all resources and make economic decisions on the basis of price.

• Market economy

• economic system

• trade-off

• revenue

A way of producing the things people need and want.

• Market economy

• economic system

• trade-off

• revenue

Giving up one good or service for another.

• Market economy

• economic system

• trade-off

• revenue

The money a business receives from selling its goods or services.

• Market economy

• economic system

• trade-off

• revenue

Expenses that do not change no matter how much a business produces.

• fixed cost

• total cost

• variable cost

• benefit- cost analysis

The combination of all fixed and variable costs.

• fixed cost

• total cost

• variable cost

• benefit- cost analysis