SCM I-UNIT 1-Economics

Concerned with economic products-goods and services that are useful, relatively scarce, and transferable to others.

• Economics

• Psychology

• Management

• Supply Chain

The amount of a good that is available for purchase.

• Supply

• Shortage

• Surplus

• Shipping

Any goods manufactured to last longer than 3 years with regular use.

• Service

• Consumer good

• Nondurable good

• Durable good

Takes place in production, when workers perform only tasks they can do better or more efficiently than others.

• Innovation

• Specialization

• Division of labor

• Specific tasks

This is given up when another choice is made.

• Opportunity cost

• Trade off

• Debt

• Strategy

A person that makes or grows items or provides a service to others.

• Producer

• Director

• Consumer

• Agent

The amount of money that a consumer is will to pay for a good or service.

• Price

• Payment

• Purchase

• Penalty

The economic term for when resources are in short supply.

• Scarcity

• Surplus

• Shipping

• Government

An economic term that describes humanities desires that extend above their basic needs: luxury cars, diamonds, art.

• Want

• Need

• Demand

• Supply

An economic term that explains humanities necessities: Food, Clothing, and Shelter

• Need

• Want

• Surplus

• Demand