Economic Terms for SMG

To distribute goods, services, and resources. Because all resources are scarce, we must make decisions about using them.

• Allocate

• Create

• Build

• Capital

A spending-and-savings plan, based on estimated income and expenditures (money spent), covering a specific period of time

• Plan

• Budget

• Spreadsheet

• Note

Man-made good used to produce other goods and services; examples include buildings, machinery, tools, and equipment

• Resource

• Employees

• Capital

• Price

An act of selecting or making a decision when faced with two or more alternatives

• Mannerism

• Cost

• Method

• Choice

Someone who buys and uses goods and services

• Producer

• Consumer

The way in which a group of people living in a country decide to produce and distribute goods, services, and resources

• Interstate

• Market

• Travel

• Transportation

An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers, all of them acting according their self-interest

• Corporation

• Farmer's Market

• Natural Resources

• Market Economy

Buyers and sellers coming together to exchange goods, services, and/or resources

• Trade

• Market

• Purchase

• Risk

Something that occurs naturally in or on the earth that is used to produce goods and services; sometimes referred to as “land”

• Natural Resources

• Producers

• Services

• Scarcity

The meaning of the term opportunity cost is the value of the next-best alternative when a decision is made; the value of what is given up in a choice

• True

• False