Economics 1 Vocabulary

Producer

• A person who buys goods or services

• Owners and workers who make goods or products

Consumers

• Only eat meat

• Buy goods and services

• Only buy goods

• Make goods

Services

• Work that is done for someone usually for compensation.

• Financial gain you get by selling something for more than it cost to make it

Desire that can be satisfied by consuming goods or services.

• Need

• Want

Anything, such as food, clothing and shelter, that are necessary for survival.

• Need

• Want

• Producer

• Consumer

The situation that exists when there are not enough resources to meet human wants.

• Shortage

• Entrepreneurship

• Scarcity

• Utility

The study of how people choose to use scarce resources to meet human want and needs.

• Geography

• Sociology

• Psychology

• Economics

Economic resources needed to produce goods and services.

• Incentives

• Utility

• Land

• Factors of Production

All natural resources used for production are referred to in Economics as

• Capital

• Producers

• Land

• Labor

All human time, effort and intent that goes into products is referred to as

• Land

• Labor

• Capital

• Entrepreneurship