Intro to Economics

The inability to satisfy all wants at the same time. All resources and goods are limited in comparison with the number and variety of wants people have.

• Plenty
• Abundance
• Excess
• Scarcity

Factors of production that are used in the production of goods and services. Types of resources are natural, human, capital, and entrepreneurship.

• Factors of demand
• Choices

• Resources

• Factors of production

The selection of an item or action from a set of possible alternatives.

• Reflection
• Correction
• Choice

• Rejection

The benefit given up when a choice is made—i.e., the highest valued alternative is foregone, Individuals must consider the value of what is given up when making a choice

• Opportunity cost
• Sunk cost
• Marginal cost
• Average cost

is the amount of money exchanged for a good or service.

• Price
• Quantity
• Value
• Cost

Things that incite or motivate.

• incentives

• deterrents
• inhibitors
• demotivators

The amount of a good or service that consumers are willing and able to buy at a

certain price

• Production
• Inventory
• Demand
• Supply

The amount of a good or service that producers are willing and able to sell at a

certain price.

• Equilibrium
• Shortage
• Supply
• Demand

The combining of human, natural, and capital entrepreneurship resources to make goods or provide services.

• Production

• Extrapreneurship
• Intrapreneurship
• Innovation

The effective utilization of productive resources

• Efficiency
• Productivity
• Inefficiency
• Effectiveness