| A | B |
|---|
| economy | all the activity of a nation that effects the production and distribution of goods and services |
| good | finished product |
| services | activities done for others for a fee |
| land | natural resources not just the earth |
| labor | work performed by people |
| capital | money and tools needed to produce goods and services |
| entrepreneur | person willing to take a risk to produce a product or offer a service |
| want | everything other than basic needs |
| needs | food, shelter and clothing |
| opportunity cost | next best alternative |
| trade off | exchanging one thing for another |
| hypothesis | educated guess or prediction |
| generalization | a statement that pulls together common ideas among facts and is usually true |
| production possibilities | all combination of goods and services that can be produced from a fixed amount |
| statistics | data presented in numeric form |
| economics | study of how individuals and nations make choices about ways to use their scarce resources to fill their wants and needs |
| resource | anything people can use to make or obtain what they need or want |
| scarcity | people do not have enough income or resources to satisfy their every desire |
| factors of production | land, labor, capital and entrepreneurship |
| technology | use of science to develp new products and new methods of producing and distributing goods and services |
