Economic Concepts Terms

Lack of resources to satisfy all wants

Rivalry among sellers; produces better quality; lower prices, “Coke vs. Pepsi”

Power of the consumer to determine what goods and services will be purchased and produced

Desire, willingness, and ability of buyers to purchase a product

Value of what is given up when making a choice.

Economy based on customs and family traditions.

Using goods or services

Combining resources to make goods or services

Amount of money exchanged for a product; determined by supply and demand

Economy where individuals, business, and government share the decisions/resources.

Products we use to satisfy our wants and needs (food, gasoline, chairs)

Earnings minus expenses

Work performed by a person for someone else.

Deals used to incite or motivate buyers; “Buy one – Get one free”

Selecting an item or action from a set of possible alternatives

Economy where the government makes all decisions and owns all resources.

Number of items a seller has available to sell at given price

Economy that operates with little influence from the government.

Money used in the production of goods

Materials used in the production of goods; natural, human, capitol, and entrepreneurship