| A | B |
|---|
| Scarcity | The inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made. |
| Resources | Things needed to make goods or provide services. |
| Supply and Demand | The amount of a good or service that consumers are willing and able to buy at a certain price. The amount of a good or service that producers are willing and able to sell at a certain price. |
| Opportunity cost | What is given up when a choice is made- the highest valued alternative forgone. Individuals must consider the value of what is given up when making a choice. |
| Choice | Selecting an item or action from a set of possible alternatives. Individuals must choose/make decisions about desired goods and services because these goods and services are limited. |
| Incentives | Things that incite or motivate. They are used to change economic behavior |
| Price | The amount of money exchanged for a good or service . |
| Consumption | Using goods and services |
| Production | The combining of human, natural, capital, and entrepreneurship resources to make goods or provide services. |
