scarcity
a result that exists when there are not enough resources to meet human demands for a product
wants
desires that can be satisfied by consuming a good or service
needs
things such as food, clothing, and shelter, that are necessary for survival
economics
the study of how people choose to use scarce resources to satisfy their wants
goods
physical objects that can be purchased such as food, clothing, and furnitures
services
work that one person performs for another for payment
consumer
a person who buys goods or services for personal use
producer
a person who makes goods or provides services
factors of production
the economic resources needed to produce goods and services
land
all the natural resources found on or under the ground that are used to produce goods and services
labor
all the human time, effort, and talent that go into making the product
capital
all the resources made and used by people to produce and distribute the goods and services
entrepreneurship
the combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run a business.
incentives
benefits offered to encourage people to act in certain ways
utility
the benefit or satisfaction gained form the use of a good or service
economize
to make decisions according to what they believe is the best combination of cost and benefit
trade-off
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opportunity cost
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cost-benefit analysis
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marginal cost
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marginal benefit
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economic models
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production possibilities curve
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efficiency
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underutilization
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law of increasing opportunity costs
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statistics
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microeconomics
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macroeconomics
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positive economics
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normative economics
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