Term | Definition |
economics | the study of how people use and transfer resources |
natural resource | things that occur in nature |
human resource | the people who do labor |
capital resource | buildings, tools, and equipment used by workers to make a good or produce a service |
goods | products that people make or grow |
services | jobs that people do to help other people |
production | when natural, human, and capital resources come together to make goods or provide services |
productivity | measures how many goods or services are produced over a certain period of time |
income | money made by a worker |
expense | the money people must spend to get a good or service |
specialization | a very narrow range of skills that workers have |
consumer | people who buy a good or service |
producer | people who make and sell goods or services |
competition | businesses that offer the same goods or services; they try to make their product attractive to consumers |
price | how much a consumer must pay for a good or service |
scarcity | not enough goods or services are available |
supply and demand | affects the price of a good or service |
profit | a business has more income than expenses |
loss | a business has more expenses than income |
international trade | movement of goods and services between countries |
exports | goods and services made in one country and sent to another country |
imports | goods and services produced in another country but brought into our country |
incentives | rewards; an offering to influence human behavior |
entrepreneurs | people who risk their time and resources to start a business |
opportunity cost | what a person loses by choosing one opportunity instead of another |