| Ter | Definition |
| Incentives | things that incite or motivate you to change
your economic behavior |
| Consumer sovereignty | consumers determine through purchases
what goods and services will be produced |
| Price | the amount of money exchanged for a good or
service |
| profit | consists of earning after all expenses have
been paid |
| Circular flow | resources, goods, services, and money flowing
throughout the economy |
| Oppurtunity cost | what is given up when a choice is made- the
highest valued alternative |
| sole propritorship | a business owned by one person who takes all
of the risks and all of the profits |
| Private Property | property owned by individuals and businesses
for use without undue interference by the
government |
| Resources | factors of production that are used in the
production of goods and services |
| Production | the combining of human, natural, capital, and
business resources to make goods and
services |
| Entreprenuer | a person who takes a risk to produce goods
and services in search of a profit |
| Scarcity | the inability to satisfy all wants at the same
time |
| Competition | rivalry between producers and sellers of
goods and services that results in better
quality goods and services at a lower price |
| human resources | time, energy, and skills needed to produce
goods and services |
| Corporation | a large business with many owners called
stock holders |
| Nautral resources | the resources from the land that are needed
to produce goods and services |
| Consumption | using goods and services |
| Choice | selecting an item or action from a set of
alternatives |
| Partnership | a form of business owned by 2 or more
individuals who share all of the risks and
profits |
| Capital resources | the tools, machinery, factories and money
that are used in providing goods and services |
| Supply | the amount of a good or service that
producers are willing and able to sell at a
certain price |
| Demand | the amount of a good or service that
consumers are willing and able to buy at a
certain price |
| Consumer | people who buy and use products |
| Producer | people who use resources to provide goods
and services |
| Economy | the management of the resources of a country |
