Economics Vocabulary #1

Economics

• the study of choices involving goods

• the analysis of financial markets

• the management of government resources

• the evaluation of consumer behavior

Production

• How do we make goods? Think 'Making Things'

• By using raw materials and labor

• Through automated machinery only

• By outsourcing to other countries

Distribution

• By using social media to promote products

• By exchanging goods directly between producers and consumers

• By getting things to people through various channels

• By relying solely on online sales platforms

Consumption

• How do we buy and use goods? Think 'Buying Things'

• What is the process of producing goods?

• How do we sell goods to consumers?

• What is the role of advertising in consumption?

Goods

• Items purchased to satisfy needs and wants (televisions, computers, etc.)

• Items that are always free of charge

• Items that are only available in stores

• Items that cannot be owned

Services

• Activities that are created and sold as they are produced (mowing a lawn, washing a car, etc.)

• Products that are manufactured and sold in stores

• Items that are bought and sold in a marketplace

• Goods that are stored and distributed through warehouses

Capital Resource

• The tools, equipment, and buildings that are used to produce goods and services

• The money used to purchase raw materials

• The labor force involved in production

• The natural resources extracted from the earth

Entrepreneurship

• The people who process and organize ideas to make goods/services a reality

• Individuals who invest in stocks and bonds

• A process of managing a large corporation

• A method of conducting market research

Scarcity

• Inability to satisfy all wants at the same time because resources and goods are limited

• Excess of resources leading to unlimited wants

• Ability to satisfy all wants with available resources

• Condition where resources are abundant and easily accessible

Choice

• Selecting an item or action from a set of alternatives

• A type of decision-making process

• A method of organizing information

• A way to express preferences