| A | B |
|---|
| Economics | the science that studies the choices of people trying to satisfy their wants in a world of security |
| land | natural resources found in nature |
| labor | physical and mental talents people contribute to the production of goods and services |
| Capital | produced goods that can be used as resources for further production ex: factories, machines, tractors |
| entrepeneurship | new business opportunities |
| Monetary Payments | rent-payment to land sources, wages- payment to labor, capital- payment to entrepeneurship, intrest-payment to capital |
| 3 economic questions that ever society must answer | What goods will be produced? How will the goods be produced? For whom will they be produced? |
| opportunity cost | highly valved opportunity or alternative forfeited when you make a choice |
| global economy | economic actions taken anywhere in the world may affect your standard of living |
| microeconomics | deals on human behavior and choices that relate to small units |
| macroeconomics | branch that deals with human behavior that relates to the entire economy |
| wants | things we deserve to have |
| tangible | able to be felt by touch |
| intangible | not able to be felt by touch |
| resources | anything that is used to produce goods and services |
| scarcity | people's wants are greater than the resources available |
| private property | good source of bye person |
| public property | goods owned by the government |
| choice | key element of free enterprise workers, businesses, buyers |
| voluntary exchange | individuals have the right to make exchanges or trade in order to make them better off |
| competition | businesses compete with each other |
| incentive | something that encourages a person towards action |
| free enterprise system | someone can get what he/she wants by offering to sell something that others want to buy |
