Definitions
Work that one person performs for another for payment
What is services
A need is
What is food, water, and shelter
When there are not enough resources to meet human wants
What is scarcity
In order for money to be store of value, the item used as money has to last.
What is durable
Goods are
What is physical objects that can be bought
For money to be a medium of exchange it has to be
What is portable
Money that has value in and of itself
What is commodity money
Benefits that encourage people to act in certain ways
What is incentives
In order for money to be a unit of account it has to be
What is divisible and countable
Money that has no intrinsic value
What is fiat money
Economizing is
What is making decisions based on the best combination of costs and benefits
An asset that maintains its value rather than depreciating
What is store of value
A person/entity who makes goods or provides services
What is a producer
Opportunity cost is
What is the value of what you give up by choosing one alternative over another
A standard numerical monetary unit of measurement
What is unit of account