Economics
The study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants.
Choice
A selection of an item or action from a set of possible alternatives. Individuals must choose or make decisions about desired goods and services because these goods and services are limited.
Consumption
The using of goods and services. Consumer preferences and price determine what is purchased and consumed.
Incentives
Things that incite or motivate. Incentives are used to change economic behaviors.
Opportunity Cost
What is given up when a choice is made.
Price
The amount of money exchanged for a good or service. Price determines who acquires goods and services.
Profit Motive
The driving force that encourages individuals and organizations to improve their material well-being.
Production
The combining of natural, human, capital and entrepreneurship resources to make goods or provide services. Resources available and consumer preferences determine what is produced.
Resources
Factors of production that are used in the production of goods and services.
Scarcity
The inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made.
Demand
The amount of a good or service that consumers are willing and able to buy at a certain price.
Supply
The amount of a good or service that producers are willing and able to sell at a certain price.