economics vocabulary set 1

Study of how individuals and society make choices about ways to use scarce resources.

• economics

• factors of production

• scarcity

• opportunity cost

Resources of land, labor capital, entrepreneurship and technology.

• trade-off

• factors of production

• scarcity

• demand

Previously manufactured goods used to make other goods and services. (ex: machines, factories)

• labor

• scarcity

• capital

• land

Not being able to have all of the goods and services one wants, because wants exceed what can be made from all available resources at any given time.

• demand

• law of supply

• opportunity cost

• scarcity

Something that motivates or encourages someone to do something.

• Incentives

• trade-off

• opportunity cost

• equilibrium

Sacrificing one good or service to purchase or produce another.

• supply

• trade-off

• opportunity cost

• demand

Value of the next best alternative given up for the alternative that was chosen.

• consumer

• producer

• opportunity cost

• trade-off

The amount of a good or service that producers are able and willing to sell at various prices during a specified time period.

• law of supply

• law of demand

• supply

• demand

The amount of a good or service that consumers are able and willing to buy at various possible prices during a specified time period.

• demand

• supply

• consumer

• producer

An economic rule stating that price and quantity supplied move in the same direction.

• surplus

• Law of Supply

• Law of Demand

• shortage