Fundamentals of Economics

Desires that can be satisfied by consuming a good or service

• Wants
• Needs
• Scarcity
• Factors of Production

Basic requirements for human survival

• Needs
• Scarcity
• Factors of Production
• Natural Resources

The limited nature of society's resources

• Scarcity
• Factors of Production
• Natural Resources
• Human Resources

Land, labor, and capital; the three groups of resources that are used to make all goods and services

• Factors of Production
• Natural Resources
• Human Resources
• Physical Capital

Raw materials from nature that are used to produce goods

• Natural Resources
• Human Resources
• Physical Capital
• Entrepreneur

People who work to produce goods and services

• Human Resources
• Physical Capital
• Entrepreneur
• Opportunity Cost

The human-made objects used to create other goods and services

• Physical Capital
• Entrepreneur
• Opportunity Cost
• Marginal Cost

A person who starts up and takes on the risk of a business

• Entrepreneur
• Opportunity Cost
• Marginal Cost
• Marginal Benefit

The most desirable alternative given up as the result of a decision

• Opportunity Cost
• Marginal Cost
• Marginal Benefit
• Positive Incentive

The cost added by producing one additional unit of a product or service.

• Marginal Cost
• Marginal Benefit
• Positive Incentive
• Negative Incentive