| A | B |
|---|
| SCARCITY | THE CONDITION THAT RESULTS FROM SOCIETY NOT HAVING ENOUGH RESOURCES TO PRODUCE ALL THE THINGS PEOPLE WOULD LIKE TO HAVE (PG. 5) |
| ECONOMICS | THE STUDY OF HOW PEOPLE TRY TO SATISFY WHAT APPEARS TO BE SEEMINGLY UNLIMITED AND COMPETING WANTS THROUGH THE CAREFUL USE OF RELATIVELY SCARCE RESOURCES (PG. 6) |
| NEED | A BASIC REQUIREMENT FOR SURVIVAL THAT INCLUDES FOOD, CLOTHING, AND SHELTER |
| WANT | A WAY OF EXPRESSING A NEED (6) |
| FACTORS OF PRODUCTION | RESOURCES REQUIRED TO PRODUCE THINGS PEOPLE WOULD LIKE TO HAVE; THEY INCLUDE LAND, CAPITAL, LABOR, AND ENTREPRENUERS (PG. 7) |
| LAND | NATURAL RESOURCES NOT CREATED BY HUMANS |
| CAPITAL | THE TOOLS, QUIPMENT, MACHINERY, AND FACTORIES USED IN THE PRODUCTION OF GOODS AND SERVICES (7) |
| FINANCIAL CAPITAL | THE MONEY USED TO BUY THE TOOLS AND EQUIPMENT USED IN PRODUCTION |
| LABOR | PEOPLE WITH ALL THEIR EFFORTS, ABILITIES AND SKILLS (8) |
| ENTREPRENEUR | A RISK-TAKER IN SEARCH OF PROFITS WHO DOES SOMETHING NEW WITH EXISTING RESOURCES (8) |
| PRODUCTION | THE PROCESS OF CREATING GOODS AND SERVICES |
| GROSS DOMESTIC PRODUCT | THE DOLLAR VALUE OF ALL FINAL GOODS, SERVICES AND STRUCTURES PRODUCED WITHIN THE COUNTRY'S BORDERS IN A 12-MONTH PERIOD |
| TRADE-OFFS | ALTERNATIVE CHOICES |
| OPPORTUNITY COST | THE COST OF THE NEXT BEST USE OF MONEY, TIME, OR RESOURCES WHEN ONE CHOICE IS MADE RATHER THAN ANOTHER |
| PRODUCTION POSSIBILTY FRONTIER | A DIAGRAM REPRESENTING VARIOUS COMBINATIONS OF GOODS AND/OR SERVICES AN ECONOMY CAN PRODUCE WHEN ALL PRODUCTIVE RESOURCES ARE FULLY EMPLOYED |
| COST-BENEFIT ANALYSIS | A WAY OF THINKING ABOUT A PROBLEM THAT COMPARES THE COST OF AN ACTION TO THE BENEFITS RECEIVED |
| FREE ENTERPRISE ECONOMY | ON IN WHICH CONSUMERS AND PRIVATELY OWNED BUSINESSES, RATHER THAN THE GOVERNMENT MAKE THE MAJORITY OF THE WHAT, HOW, AND FOR WHOM QUESTIONS |
| STANDARD OF LIVING | THE QUALITY OF LIFE BASED ON POSSESSIONS THAT MAKE LIFE EASIER |
| ECONOMIC PRODUCT | A GOOD OR SERVICE THAT IS USEFUL, RELATIVELY SCARE, AND TRANSFERABLE TO OTHERS |
| GOOD | AN ITEM THAT IS ECONOMICALLY USEFUL OR SATISFIES AN ECONOMIC WANT |
| CONSUMER GOOD | AN ITEM INTENDED FOR FINAL USE BY INDIVIDUALS |
| CAPITAL GOOD | A MANUFACTURED ITEM USED TO PRODUCE OTHER GOODS AND SERVICES |
| SERVICE | WORK THAT IS PERFORMED FOR SOMEONE |
| VALUE | A WORTH THAT CAN BE EXPRESSED IN DOLLARS AND CENTS |
| PARADOX OF VALUE | THE SITUATION IN WHICH SOME NON-NECESSITIES HAVE A MUCH HIGHER VALUE THAN SOME NECESSITIES (PG 13) |
| UTILITY | THE CAPACITY TO BE USEFUL AND PROVIDE SATISFACTION |
| WEALTH | THE ACCUMILATION OF THOSE ECONOMIC PRODUCTS THAT ARE TANGIBLE, SCARCE, USEFUL, AND TRANSFERABLE FROM ONE PERSON TO ANOTHER |
| MARKET | A LOCATION OR OTHER MECHANISM THAT ALLOWS BUYERS AND SELLERS TO EXCHANGE A CERTAIN ECONOMIC PRODUCTS |
| FACTOR MARKET | A MARKET WHERE PRODUCTIVE RESOURCES ARE BOUGHT AND SOLD |
| PRODUCT MARKET | A MARKET WHER PRODUCERS SELL THEIR GOODS AND SERVICES TO CONSUMERS |
| ECONOMIC GROWTH | THE INCREASE IN A NATION'S TOTAL OUTPUT OF GOODS AND SERVICES OVER TIME |
| PRODUCTIVITY | A MEASURE OF THE AMOUNT OF OUTPUT PRODUCED BY A GIVEN AMOUNT OF INPUTS IN A SPECIFIC PERIOD OF TIME |
| DIVISION OF LABOR | WORK ARRANGED SO THAT INDIVIDUAL WORKERS DO FEWER TASKS THAN BEFORE |
| SPECIALIZATION | SITUATION IN WHICH A FACTOR OF PRODUCTION PERFORMS TASKS THAT IT CAN DO RELATIVELY MORE EFFICIENTLY THAN OTHERS |
| HUMAN CAPITAL | THE SUM OF THE SKILLS, ABILITIES, HEALTH, AND MOVTIVATION OF PEOPLE |
| ECONOMIC INTERDEPENDENCE | RELIANCE ON ONE ANOTHER TO PROVIDE THE GOODS AND SERVICES THAT PEOPLE CONSUME |
