| A | B |
|---|
| scarcity | the inability to satisfy all wants at the same time (not enough to go around) |
| natural resources | resources from the earth (wind, solar, coal) |
| human resources | the people that perform services (human workers) |
| capital resources | MANMADE objects; the tools and money needed to make goods or provide services |
| choice | selection of an items from a set of possible alternatives |
| opportunity cost | what is given up when a choice is made |
| price | the amount of money exchanged for a good or service |
| incentives | things that incite or motivate you to buy something |
| needs | necessary items for your life (food, water, shelter) |
| wants | unnecessary items for your life (phones, video games) |
| supply | the amount of a good or service that producers are willing and able to SELL at a certain price |
| demand | the amount of a good or service that producers are willing and able to BUY at a certain price |
| production | the combining of resources to make goods or provide services |
| consumption | the using of goods and services |
| goods | a material or item that is purchased by a consumer to satisfy human wants |
| services | when an act is performed for a consumer in exchange for monetary value |
| profit | earnings left over after ALL expenses have been paid |
| entrepreneur | an individual who takes a risk by starting a business in order to make a PROFIT |
