| Term | Definition |
|---|
| Economics | study of how individuals and nations make choices to use scarce resources to fill wants and needs |
| resource | anything people use to fill wants and needs |
| Scarcity | THE fundamental problem of economics-- not having enough of whatever it is you want or need |
| wants-- | any good or service someone "wants" but doesn't "need" |
| needs | the basic 3 essentials of life-- food, clothing, shelter |
| the factors of production | Land, labor, and capital-- the 3 things required for any kind of economic production |
| land | one of the three factors of production-- includes the soil and anything below or above it-- in other words, Natural resources |
| labor | one of the three factors of production-- human work, physical or mental |
| capital | one of the three factors of production-- Money And Things used to make Money and Things |
| Entrepreneurship | the activity of starting up new business or investing in new products |
| "goods and services" | the basic economic products-- goods are Things made or sold, services are activities done for pay |
| Technology | Tools-- and the skills to use them |
| Trade-off | Getting something, and giving something up |
| Opportunity cost | what you can't buy, now that you just spent your money on something else |
| "the economy" | all the activities in a nation involving production, distribution, and use of goods and services |
| economic model | an (over)simplified model of how parts of the realworld economy work |
| values | the things that a society wants most-- things like "freedom" of "equity" (that is, fairness) or "work for everyone" or "everyone having exactly as much as everyone else" |
| productivity | the ability to provide goods or services better, faster, cheaper |
Combine with other sets
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