| Term | Definition |
| Economics | The study of decisions -- the study of how people meet their wants and needs. |
| Goods | Things that we can touch and/or use |
| Services | Things that someone or something does for another
Services can provide us with goods |
| Producers | People and businesses that sell/make goods or services |
| Consumers | People who use or buy those goods or services given by a producer |
| Trade | The exchange of goods/services
Typically with money |
| Barter | Trading without money |
| Market | An organized way for producers and consumers to trade goods/services
Typically involves cash but not always
Can be digital
i.e supermarket |
| Who | Who a product is meant for, who the target audience is |
| How Many | How many of the product should be produced |
| How | How will this product be made and sold(from the factory to the store or home) |
| What | What a company should produce or provide (based off of wants and needs) |
| Factors of Production | the resources producers use to make and sell the things consumers want and need |
| Land | Natural resources
Not man made
Includes both renewable and nonrenewable things
I.e metals, oils |
| Labor | Human effort to produce things, people who are payed to do a certain job |
| Capital | Man-Made resources
Any tool, machine or man-made item that helps us do something |
| Entrepreneurship | Starting a new business
People who take the risk and put all the factors of production together
Similar to labor but different
I.e Mark Zuckerberg |
| Supply | the amount of a good or service that is available, large supply means there is a lot |
| Demand | The want or desire for certain goods or services |
| Supply and Demand | If you have a low supply and high demand, producers will make the price higher and make more of the good or service.
If there is a large supply but low demand, producers will decrease the price and make less of the good |
| Scarcity | Limited resources to meet unlimited wants and needs
There is a scarcity of water in a desert |
| Opportunity cost | What you gave up when making an opportunity |
| incentive | a factor encouraging people to act a certain way
money: to work a job
good grades: to study |
