| A | B |
|---|
| goods | anything that can be seen, bought, or sold |
| service | work done by people for money |
| examples of goods | books, pencils, desks |
| examples of services | lawyer, police officer, librarian |
| factors of production | labor, entreprenuer, resources, capital |
| entreprenuer examples | Benjamin Franklin, Bill Gates |
| examples of natural resources | trees and water |
| examples of capital | computers, telephones, cars |
| scarcity | inability to satisfay all wants at the same time |
| choice | selecting an item or action from a set of possible alternatives |
| opportunity cost | what is given up when a choice is made |
| value | the importance of an item |
| price | the amount of money exchanged for a good or service |
| incentives | things that motivate people to buy or do something |
| incentive example | buy 1 get 1 free! |
| demand | the amount of goods or services consumers want to buy |
| supply | amount of goods or services producers have |
| production | the making of goods |
| consumption | the using of goods and services |
