| A | B |
|---|
| economics | study of how things are made, bought, sold and used |
| resources | factors of production;land, labor, capital, entrepreneur |
| choice | selecting an item from a set of alternatives |
| price | amount of money exchanged for goods/services |
| demand | amount of good/service consumers are willing to buy at a certain price |
| supply | amount of good/service producers are will to make at a certain price |
| supply & demand | their interaction determinds the market price |
| opportunity cost | what is given up when a choice is made |
| incentive | something that incites or motivates |
| scarcity | the inability to satisfy all wants at the same time |
| production | combining of factors of production in order to make a good/service |
| consumption | using goods/services |
| land | natural resources |
| labor | human effort to make a good/service |
| capital | money, tools, machines, factories used to make a good/service |
| entrepreneur | risk taker; boss |
