Econ Unit One

Limited quantities of resources to meet unlimited wants

• Demand

• Supply

• Scarcity

• Opportunity Cost

Consumer willingness and ability to buy products

• wants & needs

• income

• risk tolerance

• demand

Individual or organization that receives and executes buy and sell order on behalf of outside customers in return for commissions

• stock broker

• stock exchange

• public corporation

• investor

Indicates how much and how quickly the value of an investment, market, or market sector changes

• risk

• volatility

• diversification

• opportunity cost

How comfortable you are with investing

• entrepreneur

• sole proprietorship

• risk tolerance

• investor

Cost of the next best alternative

• cost-benefit analysis

• scarcity

• demand

• opportunity cost

Spreading out investments to reduce risk

• diversification

• stock exchange

• volatility

• risk tolerance

The quantity of something that producers have for sale

• stock

• supply

• amount

• demand

Megan wanted to buy some new shoes, but they were more expensive then she expected. She'd planned on some Crocs and some Chacos, but she could only afford the Chacos. The Crocs represent the:

Mrs. Friedman opened her own bookstore without any business partners. She was the