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| Economics | Study of how to meet unlimited wants and needs of a society with its limited resources. |
| Scarcity | Condition in which more goods and services are desired than are available. |
| Surplus | Condition where consumers desire less goods and services than were produced, also referred to as an overage. |
| Economic Resources | Includes land, labor, and capital resources which can be used to produce the goods and services that people consume. This is also known as the factors of production. |
| Capital | Money needed to start and operate a business or the products used in the production of other goods. |
| Entrepreneurship | ncorporates the skills of people who are willing to take the risk of starting their own business. |
| Utility | Refers to the added value or usefulness of a product. |
| Form utility | Value added by changing raw materials or putting parts together to make them more useful. |
| Place utility | Value added by having a product where customers can buy it. |
| Time utility | Value added by having a product at a certain time of year or a convenient time of day. |
| Possession utility | Value added by exchanging a product for monetary value. |
| Information utility | Value added by communicating with the customer. |
| Supply | Amount of goods producers are willing and able to produce and sell at a given price during a certain period of time. |
| Demand | Consumers willingness and ability to buy products at a given price during a certain period of time. |
| Law of supply | With all other factors being equal, as the price of a product increases, the quantity supplied will increase, and as the price of a product decreases, the quantity supplied will decrease. |
| Law of demand | With all other factors being equal, as the price of a product increases, consumer demand for the product decreases, and as the price of a product decreases, consumer demand for the product increases. |
| Shortage | When demand exceeds supply, also referred to as scarcity. |
| Equilibrium | Occurs when supply and demand are equal. |
| Elasticity | Degree to which demand for a product is affected by its price. |
| Elastic demand | Refers to how changes in the price of a product result in a change on the demand for that product. |
| Inelastic demand | Refers to how changes in the price of a product have very little affect on the demand for that product. |
| labor proeuctivity | The amount produced per worker measured during a specific time period. |
| Gross Domestic Product | Measure of the goods and services produced in a country. |
| Gross National Product | The sum of the dollar value for products produced by a country. |
| Standard of Living | The amount of goods and services that a nations people have. |
| Inflation Rate | The rate at which prices are rising. |
| Unemployment Rate | The number of people who are willing and able to work but cannot find a job. Can be determined by dividing the number of unemployed workers by the total number of people who are able and willing to work (including both employed and unemployed). |
| Business Cycle | The movement of an economy through four recurring phases expansion, recession, depression, and recovery. May also be called the economic cycle. |
