| A | B |
|---|
| scarcity | far more demand than supply |
| surplus | far more supply than demand |
| Opportunity Cost | what you miss out on one you make a particular choice |
| consumption | the use of goods or service |
| production | combining natural, capital and human resources to make goods or provide services |
| factors of production | resources needed to provide goods and services |
| natural resources | resources found in nature |
| capital resources | man-made resources used in production |
| human resources | labor; the people doing the work |
| entrepeneur | person who takes risks by providing the resources for production, in hopes of making a profit |
| supply | how much of something is available |
| demand | how many people want to buy something |
| law of supply | when the price goes up, the supply goes up too |
| law of demand | when the price goes up, the demand goes down |
| equilibrium price | price at which supply is the same as demand |
| barter | direct trade, without using money |
| indirect trade | selling your good or service for money, than using the money to buy what you need |
