Economics Vocabulary Worksheet

What is the definition of Scarcity?

• When resources are limited but wants are unlimited, forcing people to make choices.

• When resources are unlimited and wants are limited, so everyone gets what they want.

• When people have no wants or needs at all.

• When resources are always available in abundance for everyone.

What is the definition of Trade-offs?

• Giving up one option in order to gain another.

• Making decisions without any consequences.

• Choosing all available options at once.

• Avoiding any form of decision making.

What is the definition of Opportunity Cost?

• The value of the next best alternative that you give up when making a decision.

• The total amount of money spent on a project.

• The profit earned from an investment.

• The resources used to produce a good or service.

What is the definition of Factors of Production?

• The resources needed to produce goods and services: land, labor, capital, and entrepreneurship.

• A method of calculating profit in a business.

• A type of government regulation for businesses.

• A process of distributing finished goods to consumers.

What is the definition of Natural Resource?

• Things found in nature used to produce goods and services (land, water, minerals).

• Man-made items created in factories for human use.

• Technological devices used for communication and entertainment.

• Services provided by people such as teaching and healthcare.

What is the definition of Human Resources?

• Workers’ skills, knowledge, and effort used to produce goods and services.

• The financial capital used to start a business.

• The physical buildings and machinery used in production.

• The natural resources extracted from the environment.

What is the definition of Physical Capital?

• Man-made tools, machines, and buildings used to make goods and services.

• Natural resources such as land and water used in production.

• The skills and knowledge possessed by workers.

• Money used to invest in businesses.

What is the definition of Entrepreneurship?

• People who combine resources, take risks, and create businesses.

• A person who only manages existing businesses.

• Someone who avoids risks in business.

• A person who only invests in stocks.

What is the definition of Profit?

• The money a business makes after all costs are paid.

• The total amount of money a business receives from sales.

• The amount of money invested in a business.

• The value of all assets owned by a business.

What is the definition of Risk?

• The chance of losing money, time, or effort in a decision.

• A guaranteed way to make a profit.

• A situation where there is no uncertainty.

• The process of planning for success.