Market Terms

The inability to satisfy all wants at the same time because all resources and goods are limited.

• Opportunity cost

• Incentives

• Scarcity

Factors of production used to make goods.

• Opportunity cost

• Incentives

• Resources

• Production

________ is a selection of an item or action from a set of possible alternatives

• Opportunity cost

• Choice

• Production

When a choice is made, __________is the value of what you are giving up.

• Opportunity cost

• Choice

• Production

The amount of money exchanged for a good

• Price

• Choice

• Incentive

Things that create or insite motivation to purchase, like two for one coupon at macdonies

• Opportunity cost

• Choice

• Incentive

These are used to change ecomomic or money spending behavior.

• Opportunity cost

• Choice

• Incentive

This determines price in a free market economy

• Supply = Toilet Paper on the shelves at the supermarket

• Demand = Every house hold uses toilet paper

• Both Supply and Demand

The amount of goods or services consumers like you and me are willing to pay at a certain price.

• Supply = Ice cream cone for $15

• Demand = Ice cream cone for $2.00

The amount of goods or services that producers, like Nike are willing to sell a certain price.

• Supply = Air Jordans for $75.00

• Demand = Air Jordans for $10.00