Econ-Unit 1 Vocab

the basic economic problem, we have limited resources and unlimited wants

• scarcity

• opportunity cost

• terms of trade

• comparative advantage

something that is necessary to survive

• need

• want

• scarcity

• good

something that is desired but not necessary to survive

• need

• want

• service

• good

item that satisfies a want or need and provides utility

• good

• service

• need

• want

transaction in which no physical good is transferred from buyer to seller

• good

• service

• need

• want

inputs needed to create goods/services

• factors of production

• need

• want

• comparative advantage

factor of production that comes from the earth, not man-made

• land

• labor

• capital

• entrepreneurship

efforts of people that contribute to the production of goods/services

• land

• labor

• capital

• entrepreneurship

machinery, tools, buildings, etc; anything that goes into making a good/service

• land

• labor

• capital

• entrepreneurship

risk taker, person who combines the factors of production to make a good/service

• land

• labor

• capital

• entrepreneurship