Productive Resources
Materials and people used to create goods and services
Natural Resources
productive resources supplied by nature. Examples include ores, trees, and fertile land
Human Resources
the talents and skills of people who contribute to the production of goods and services.
Capital Goods
the human-made materials needed to produce goods and services. Examples include buildings, machinery, and equipment
Entrepreneurs
people who start businesses to provide goods and services.
Scarcity
not enough resources to produce or purchase all the goods and services that people want or need
Economic Decision-making
Deciding how to use productive resources
Cost
what you give up as a result of a decision you make
Opportunity Cost
the next-best choice in a decision; what you give up in order to get what you choose
Benefit
what you gain as the result of a decision you make
Consequence
the natural, logical result of an action
Present Consequence
the immediate results of the choices you make
Future Consequence
the delayed results of the choices you make
Specialization
Using the productive resources that are most abundant to produce goods and services; producing efficiently
Productivity
Using what you have to make things efficiently. Specialization increases this
Price Incentive
benefit given to get someone to buy a product
Interdependence
a relationship in which each member of a group relies on the other members for something they need
Standard of living
the comforts, wealth, goods, and services available to people
Voluntary Exchange
trade that benefits both parties