| A | B |
|---|
| economics | the study of how things are made, bought, sold, used |
| scarcity | the inability to satisfy all wants at the same time |
| resources | factors of production used in making goods & services |
| choice | selecting an item or action from alternatives |
| opportunity cost | what is given up when a choice is made |
| price | amount of money exchanged for a good or service |
| incentives | things that incite or motivate |
| supply & demand | interaction of these two determines price |
| production | combining of resources to make goods or provide services |
| consumption | using goods and services |
| entrepreneur | person who takes a risk |
| land | place for a business |
| labor | people to make the product |
| capital | money, machines, buildings |
