| Term | Definition |
|---|
| Economics | a social science that studies how people, acting individually in groups, decide to use scarce resources to satisfy their wants. |
| Production | a process that combines economic resources so the result is a good or service that is available for sale. |
| Distribution | the process of getting a product or service to consumers |
| Consumption | using a product or service, completes the want-satisfaction chain |
| Land | natural resources that are unaltered gifts of nature, such as soil, minerals, timber, and fresh water |
| Labor | the physical and mental efforts people use to create goods |
| Capital | the buildings, tools, and machines people create and use to produce final goods and services |
| Factors of Production | the land, labor, and capital resources used to produce goods and services |
| Entrepreneurship | the imagination, innovative thinking, and management skills needed to start and operate a business |
| Scarcity | an inequality that exists between wants and the resources available to satisfy them |
| Opportunity Cost | the highest valued alternative given up as a result of making a choice |
| benefits | the gains that result when a choice is made |
| costs | the losses that result when a choice is made |
| incentives | a positive reward that results from from making a choice or behaving in a certain way |
| disincentives | a negative or withdrawn reward |
| Marginal | the extra or additional costs or benefits of a decision |
| profit | a positive difference between total sales and total income |
| market economy | an economy that relies on voluntary trade as the primary means of organizing and coordinating production |
| market | an arrangement that allows buyers and sellers to make exchanges |
| macroeconomics | the study of economics as a whole |
| microeconomics | the study of individual consumers and businesses |
Combine with other sets
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