Economic Vocab

System in which decisions about production and consumption are made by producers and consumers.

If an item is considered to be scarce which of the following statements would be correct?

The study of how people and societies use limited resources to satisfy unlimited wants

Situation in which unlimited wants exceed limited resources available to fulfill those wants

Deals with the economy as a whole instead of focusing on individual parts

If the corn supply is reduced by drought what happens to the price of corn at the supermarket?

Accepting the risk of starting and running a business.

Cost of the next best alternative when one choice is made rather than another

A group of buyers and sellers of a particular good or service

All things used in producing goods and services

Price to produce one additional unit of a good or service.

People using efforts, knowledge, and skills at work to produce goods and services

Amount of something left over when requirements have been met; an excess of supply over demand.

Study of a single factor of an economy rather than an economy as a whole.

Alternatives that must be given up when one is chosen over another

The tools, equipment, and buildings that are used to produce goods and services

Consumer willingness and ability to buy products

Items businesses sell that can be physically weighed or measured.

Actions or activities that one person performs for another

Substances such as minerals, trees, and water that are used for economic gain