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| allocate | distribute scarce resources such as money, land, equipments, or labor in order to satisfy the greatest number of needs and wants. |
| complementary good | a good that is commonly used with another good and for which demand increases when the demand for the related good increases. |
| consumer | one who buys goods or services for personal not use not for resale or use in production or manufacturing. |
| credit | a form of exchange that allows consumers to use items with a promise of repayment over a specified time. |
| demand | the amount of a good or service that consumers are willing and able to buy at various prices during of a given period. |
| demand curve | a graphic representation of a demand schedule, showing the relationship between the price of an item and the quantity demanded during a given period, with all other things being equal. |
| demand schedule | a table that shows the level of demand for a particular item at various prices. |
| division of labor | the division of a complex procedure into small tasks, enabling workers to increase output through specialization. |
| economics | the study of how society chooses to use scarce resources to satisfy its unlimited wants and needs. |
| elastic demand | the situation that exists when quantity demanded changes greatly in response to a change in price. |
| elastic supply | the situation that exists when quantity supplied changes greatly in response to a change in price. |
| entrepreneur | a person who attempts to start a new business or intro a new product. |
| exchange | the process by which producers and consumers agree to provide one type of item in return for another. |
| goods | any object or material that can be purchased to satisfy human wants or needs. |
| human resource | any human activity mental or physical used in the production process. |
| income effect | the effect that a change in an item price has on consumers’ ability to purchase goods. |
| inelastic demand | the situation that exists when quantity demanded changes only slightly or not at all in response to a change in price. |
| law of demand | the principle that all other factors being equal, consumers will purchase more of a good at lower prices and less of a good at higher prices. |
| macroeconomics | the study of an entire economy or one of its principle sectors. |
| microeconomics | the study of a single factor of an economy such as individuals, households, businesses, and industries rather than an economy as a whole. |
| money | any item that is accepted in exchange for goods, services, or the settling of debts. |
| natural resource | in economics, any material provided by nature that can be used to produce goods or provide services. |
| producer | a person, group, or business that makes goods or provides services to satisfy consumers’ needs and wants. |
| profit | the difference between the revenue received from the sale of a good and service and the costs of providing that good or service. |
| purchasing power | the amount of income that people have available to spend on goods and services. |
| quantity demanded | the amount of a good or service that consumers are willing able to purchase at a particular price. |
| regulations | a rule that a government establishes and enforces to protect the public or provide equal access to specific goods and services. |
| scarcity | the fundamental condition of economics that results from the combination of limited resources and unlimited wants. |
| service | any action or activity that is performed for a fee. |
| specialization | the focus of workers on only one or a few aspects of production in order to improve efficiency. |
| subsidies | a payment made by a government to individuals, businesses, or an industry to encourage certain activities that are considered essential or desirable. |
| substitute good | a product that purchasers use in place of another product, particularly if the price of the other product rises. |
| substitute effect | consumers’ tendency to substitute a lower-priced good for a similar, higher priced one. |
| supply | the amount of a good or service that producers are willing and able to offer/make at various prices during of a given period. |
| supply curve | a graphic representation of a supply schedule, showing the relationship between the price of an item and the supply schedule with all other things being equal. |
| tax | a required payment to a local, state, or national government, usually made on some regular basis. |
| technology | scientific and technical techniques used to produce existing products more efficiently or of higher quality. |
| total costs | the sum of the fixed and variable costs involved in the production of a good or service. |
| total revenue | a business’s total income; sometimes called total receipts. |
| trade-off | sacrifice of one good in order to purchase or produce another. |
