Economics Vocabulary Chapter 1

tools, equipment, and factories used in the production of goods and services

person who uses goods and services to satisfy needs adn wants

product intended for the final use by consumers rather then businesses

process of using up goods and services to satisfy needs and wants

goods that lasts more than three yeears when used regularly

economic activities in one part of the country or world affect what happens elsewhere

the study of human efforts to satisfy their unlimited needs and wants by making choices on how to use scarce resourses

risk-taking individuals in search of profits

market where productive resources are bought adn sold

productive resources that make up the 4 categories of land, capital, labor, and entrepreneurship

money used to buy the tools and equipment used in production

market economy in which privately owned businesses have the freedom to operate for a profit with limited government involement

things such as sunshine or air because they are so plentiful; because no one can own them, no price attached to them

tangible economic product that is useful, relatively scarce, and transferable to others

people with all their abilities and efforts involved with production

a productive resource not created by human efforts involved with production

meeting place or mechanism allowing buyers and sellers of an economic product to come together

basic requirement for survival

item that lasts for less than three years when used regualrly

cost of the next best alternative use of money, time, or resources when one choice is made rather than another

market where goods and services are offered for sale

process of creating goods adn services using productive resources

diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed

degree to which productive resources are used efficiently

economic problem resulting from a combination of scarce resources and people’s unlimited wants and needs

work that is performed for someone

assignment of tasks so that each worker performs fewer functions more frequently

Ability or capacity of a good or service to be useful and give satisfaction to someone

worth of a good or service as determined by the market

sum of tangible economic goods that are scarce, useful, and transferable from one person to another