Economics Basics

Consumers

• A person who purchases goods and services for personal use.

• A business that sells products to other businesses.

• An individual who produces goods for sale.

• A government entity that regulates market prices.

Natural Resource

• Materials that exist naturally, without any actions of humankind and can be used for economic gain.

• Products manufactured by humans for economic purposes.

• Resources that are only found in urban areas and are man-made.

• Items that are exclusively digital and have no physical form.

Public Sector

• The part of the economy that deals with the delivery of goods and services by and for the government, such as public education.

• The sector that focuses on private business and profit generation.

• The area of the economy that includes non-profit organizations and charities.

• The segment of the economy that is solely responsible for international trade.

Free Market Economy

• A system that is created by interactions between buyers and sellers that have few, if any, regulations.

• A government-controlled economy where prices are set by the state.

• An economy where all resources are owned by the government.

• A system where trade is conducted through barter without any currency.

Opportunity Cost

• The cost of an opportunity lost due to a decision.

• The value of the next best thing you give up whenever you make a decision.

• The total cost of all alternatives considered.

• The benefit received from the best alternative chosen.

What is a Capital Resource?

• Land, buildings, and equipment that are used to produce goods and services.

• Only land that is used for agriculture.

• Financial resources available for investment.

• Natural resources that are found in the environment.

Profit Motive

• The incentive or desire to work or form a business in order to gain profit or make financial gains.

• A strategy to minimize costs and maximize efficiency in production.

• A legal requirement for businesses to disclose their financial statements.

• A social responsibility to give back to the community.

Productive Resource

• Resources that allow people to be productive, including natural resources, capital resources and human resources.

• Only natural resources that are used for production.

• Financial investments made by companies to increase productivity.

• Human resources that are not involved in production.

Mixed Economy

• A system where the government controls all resources.

• A combination of a market and a command economy.

• An economy based solely on agriculture.

• A type of economy that only uses barter.

Traditional Economy

• Decisions are made based on market trends.

• Decisions are made on the basis of customs.

• Decisions are made by government regulations.

• Decisions are made through technological advancements.