Basics of Economics Vocabulary

the resources- including land, labor, and capital- that are needed to produce goods and services

The study of how people seek to satisfy their needs and wants by making choices

deciding whether to do or use one additional unit of some resource

consumers want more of a good or service than producers are willing to make available at a particular price

the cost of producing one more unit of a good

the effort that people devote to a task for which they are paid

something essential for survival such as food or medical care

all natural resources used to produce goods and services

the extra benefit of adding one unit

The giving up of one benefit in order to gain another, greater benefit

Limited quantities of resources to meet unlimited wants

the physical objects that someone produces

the most desirable alternative given up as the result of a decision

something that people desire but that is not necessary for survival

the trade-offs that nations face when choosing whether to produce more or less military or consumer goods

the human-made objects used to create other goods and services

a person who decides how to combine resources to create goods and services

any human-made resource that is used to produce other goods and services

a decision-making process in which you compare what you will sacrifice and gain by a specific action

the skills and knowledge gained by a worker through education and experience

Actions or activities that one person performs for another