Basic Economic Vocabulary

Having a limited quantity of resources to meet unlimited wants.

• Scarcity

• Demand

• Supply

• Profit

Cost of what you have to give up when making a choice

• demand

• supply

• opportunity cost

• incentive

Desire for a particular good or service

• incentive

• specialization

• supply

• demand

Amount of a good or a service that is available for use

• market

• supply

• incentive

• revenue

Person or business that makes and sells product(s)

• market

• consumer

• traditional economy

• producer

Person or business that buys or consumes products

• producer

• consumer

• command economy

• revenue

Factor that encourages people to behave in a certain way

• economics

• scarcity

• profit

• incentive

Act of concentrating on a limited number of goods or activities

• specialization

• opportunity cost

• scarcity

• inflation

Decline in economic growth for six or more months in a row

• command economy

• recession

• inflation

• scarcity

General increase in prices

• incentive

• revenue

• inflation

• demand