| Term | Definition |
|---|
| Factors of Production | The resources that are available to fit to peoples' needs and wants by producing products or services. |
| Labor | The skills, knowledge, time, and energy of people involving in making a product or providing a service. |
| Land | the non man-made materials used to make a product or provide a service. |
| Capital | Any man- made product made for the purpose of creating another product or service. |
| Wants | The desire or need for a product or service. |
| Production | the combination of land, labor, and capital to make a good or provide services. |
| Distribution | The process of distributing goods all over the world and available to people. |
| Consumption | The act of using a good or product, satisfaction may only be temporary. |
| Benefits | The positive traits of your decision. |
| Opportunity Cost | The benefit of greatest value is given up when you make a decision. |
| Scarcity | Limited resources compared to peoples' wants. |
| Supply | The amount of goods or services business are willing and able to produce. |
| Demand | The amount of goods and services the public are willing and able to buy. |
| Law of Supply | As prices go down, supply goes down; as prices go up, supply goes up. |
| Law of Demand | As prices go down, demand goes up; as prices go up, demand goes down. |
| Market Price | The point at which the public and producers agree to do business (cost). |
| Traditional Economy | Individuals, determined by long-standing customs, determined by long-standing customs,varies on one's role; family needs. |
| Command Economy | Government, central authority, central authority, depends on leaders' values. |
| Market Economy | Individuals, determined by people who own F.O.P., determined by people who own F.O.P., people with money. |
| A Medium of Exchange | It's what you give to get something in exchange. People accept it because they can use it for the same purpose. |
| A Standard of Value | People who understand the comparison worth of an object or service when discussing its price or money it generates. |
| A Store of Value | Money maintains its worth if saved over time. |
| Generally Acceptable | Everyone is willing to take money in exchange for goods and services because they too will be able to use or save it . |
| Easily Counted and Measured | Easy to understand the prices, and know the differences between money. |
| Durable | Money lasts for a long time and is not easily destroyed |
| Convenient | Paper money and coins are easy to carry and use. |
| Inexpensive to Produce | Today's paper money and coins are much less expensive to make in comparison to the past practice of mining for precious metals to produce coins. |
| Easily Controlled | Our money can be controlled easily because of its design. There is a continuous supply because its cheap and easy to produce. |
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