Column 1
The physical equipment used in the production of goods and services
Capital Resources
Actions that are valued by others
Services
One who buys or rents goods or services and uses them
Consumer
One who makes goods or services
Producer
A place or process through which goods and services are exchanged
Market
The highest valued alternative given up when a decision is made
Opportunity cost
Desires that can be satisfied by consuming goods, services, or leisure activities
Wants
Entities that produce goods or services in many countries as well as engage in international trade
Multinational corporation
The different quantities of a resource, good or service that potential sellers are willing and able to sell at various prices during a specific time period
Supply
An economic condition that exists when demand is greater than supply
Scarcity
One who organizes, manages, and assumes the risks of a business or enterprise
Entrepreneurship
Ideas, goods, and services in one area affect decisions and events in other areas reducing self-sufficiency
Interdependence
Assets having a physical existence, such as cash, equipment, and real estate
Tangible assets
Factors that motivate or influence human behavior
Incentives
A severe recession in terms of magnitude and/or length
Depression
What is given up when a choice is made, monetary and/or non-monetary
Cost
The study of the behavior of individuals and institutions engaged in the production, distribution, and consumption of goods and services
Economics
Objects that can satisfy peoples’ wants
Goods
Economic theory that a country/individual should sell goods and services which it can produce at relatively lower costs and buy goods and services which it can produce at relatively higher costs
Comparative advantage
The rivalry among people and/or business firms for resources and/or consumers
Competition
Goods or services provided by the government rather than by the private sector. Goods and services that more than one person can use without necessarily preventing others from using them
Public goods
Voluntary exchange between two parties in which both parties benefit
Trade
Form of division of labor in which each individual or firm concentrates its productive efforts on a single or limited number of activities
Specialization
A method of organizing production whereby each worker specializes in part of the productive process
Division of labor
The way societies organize to determine what goods and services should be produced, how goods and services should be produced, and who will consume goods and services.
Economic systems