| A | B |
|---|
| Economics | study of how people make choices about ways to secure resources to fulfill their wants and needs – study of production, distribution and consumption of goods & services |
| Scarcity | not having enough resources to produce all the things we would like to have |
| Land | area needed to produce good’s or services |
| Labor | the human effort directed toward producing goods & services |
| Capital | goods used to make other goods – machines, tools, buildings |
| Entrepreneurship | skill of individuals who start new businesses, introduce new products & improve management techniques or ideas of how to organize & run a business |
| Renewable Resource | materials in nature that replenish themselves |
| Nonrenewable Resource | – materials in nature that do not replenish themselves |
| Productivity | degree that resources are being used efficiently to produce goods & services |
| Goods | tangible products to satisfy our wants or needs |
| Services | work performed by someone for someone else |
| Producer | someone who makes or delivers a good or service |
| Consumer | someone who uses a good or service |
| Pricing | the determining of how much a business can get for its goods in the market |
| Wage | money paid to workers on an hourly basis |
| Minimum Wage | lowest legal wage that can be paid to workers |
| Salary | money paid to management on a weekly, monthly or yearly basis |
| Trade-off | the exchange of one thing for another of more or less equal value, to effect a compromise |
| Opportunity Cost | the value of the next best alternative foregone as the result of making a decision |
