| A | B |
|---|
| resources | countable wealth, such as money, property and products |
| surplus | the amount left after all demands are satisfied |
| profit | what is left of selling price after all costs have been subtracted |
| entrepreneur | a person who brings together labor and capital to produce a product for profit |
| gross income | the amount earned before deductions |
| full employment | when everyone who wants to work has a job |
| rent | money paid for the use of property |
| credit | money placed at a person's disposal by a lender |
| economics | a social science dealing with production, distribution and use of goods and services |
| factors of production | all the things that combine to satidy economic needs: land, labor, capital, management and government |
| consumer goods | items that fulfill human needs such as food and clothing |
| real property | buildings and land |
| recession | a slow down of business activity that is not as severe as a depression |
| income | the money received for the sale of goods and services |
| shortages | insufficient supplies-not enough to fill demands |
| poverty | extreme lack of money and possessions |
| supply | the goods and services offered for sale or use at any time |
| prosperity | economic well being |
| index | the number used to show the ratio of one thing to another - used for cost of living |
| deflation | a drop in prices that occurs when the demand for goods is less than the supply |
| utility | the usefulness of a good or service |
| loss | when the cost of producing an item is greater than the selling price |
| depression | a time of extremely low economic activity with rising unemployment |
| per capita | per person |
| price index | a number expressing the difference in the level of buying power at two different times |
