| A | B |
|---|
| ECONOMICS | is the production, distribution, consumption of goods and services and how those resources are allocated(distributed) |
| SCARCITY | when the demand of good or services is greater than what available - not enough to meet the needs |
| Microeconomics | the study of how individuals, households, companies behave in making decision and allocate resources. Ex: income, savings |
| Macroeconomics | it the study of the economy as a whole. Example unemployment, interest rates, Gross domestic product(GDP), inflation,deflation, etc |
| ENTREPRENEUR | someone who organizes and operates a business while also taking on greater than normal financial risk in order to do so |
| CONSUMER | A person who purchases goods and services for personal use |
| PRODUCER | A person, company, or country that makes, grows, or supplies goods or services for sale |
| FACTORS OF PRODUCTION | land, labor, capital and entrepreneurship |
| Opportunity Cost | is the second most desirable option (the thing you give up), when you choose your best option |
| Land | consist of all natural resources used to produce goods and services |
| Labor | is human effort directed toward producing goods and services |
| Capital | s tools, equipment, and factories used in the production of goods and services |
