EPF Module 1 Vocabulary Review

the item is considered a necessity, so a price change does not significantly affect the demand of the item

the additional effort or price of producing or using one more unit of a good or service

the satisfaction that one receives from one more unit of a good or service

products used to satisfy our wants and needs

refers to how much (quantity) of a product or service is desired by buyers

a rivalry between two or more businesses trying to sell products to the same customer or market

things that you must have to survive

a shortness of supply; not enough of something to satisfy everyone’s wants and needs

the human, natural, capital resources + entrepreneurship used to produce a product or service

things that you would like to have, but that you can do without: example, iPhone

a side effect of an action that affects a third party other than the buyer or seller

the benefits you could have received by performing an alternative action to the one you chose to do

a person who uses their ideas and takes risks in order to create a new business

represents the total amount the market is currently producing

refers to how much the demand for an item changes based on a change in the price of that item

the study of how individuals and societies make decisions about production and consumption of goods and services

activities used to satisfy our wants and needs

a natural resource that can be replaced, example: trees

an action or reward that motivates one to act a certain way

an increase in the overall level of prices for goods

anything that is generally accepted as payment for goods and services

one of the factors of production; involves taking the actions and risks necessary to produce a new product, service

the highest price that sellers may charge for a product as mandated by... usually the government

a natural resource that is irreplaceable; when it’s used up it cannot be replaced

the price at which quantity demanded meets quantity supplied

the lowest price that buyers must pay for a product as mandated by...usually the government