Economic Vocabulary

All natural and man-made materials (things) used in the production of goods and services.

• Needs

• Supply

• Resources

• Wants

If prices rise but wages (pay) does not, it makes it harder to afford basic needs. This is called _________________.

• Demand

• Resource

• Need

• Inflation

The inability to satisfy all needs and wants at the same time due to (because of) limited resources.

• Scarcity

• Supply

• Goods

• Want

Objects that can satisfy people's needs and wants.

• Needs

• Scarcity

• Goods

• Wants

Activities performed by people, firms, or government agencies to satisfy economic needs and wants.

• Goods

• Supply

• Services

• Demand

Human activities concerned with the production, distribution, and consumption of goods and services.

• Resources

• Scarcity

• Goods

• Economy

Money that is used to make more money; money that is invested in a business.

• Economy

• Demand

• Capital

• Goods

A theory (assumption) explaining the interaction between the supply of a resource and the demand for that resource.

• Needs and Wants

• Resources

• Goods and Services

• Supply and Demand