Name _______________________________

Economics Vocabulary

1. ____________________________ is the inability to satisfy all wants at the same time. All resources and goods are limited. This requires that choices be made.

2. ____________________________ are factors of production that are used in the production of goods and services. Examples are natural, human, capital, and entrepreneurship.

3. ____________________________ is selecting an item or action from a set of possible alternatives. Individuals must make decisions about desired goods and services because these goods and services are limited.

4. ____________________________is what is given up when a choice is made—the highest valued alternative forgone. Individuals must consider the value of what is given up when making a choice.

5. ____________________________ is the amount of money exchanged for a good or service. It determines who acquires goods and services.

6. ____________________________are things that incite or motivate. They are used to change economic behavior.

7. Interaction of ________________________________________________determines price.

8. ____________________________is the amount of a good or service that consumers are willing and able to buy at a certain price.

9. ____________________________is the amount of a good or service that producers are willing and able to sell at a certain price.

10. ____________________________is the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services. Resources available and consumer preferences determine what is produced.

11. ____________________________is using goods and services. Consumer preferences and price determine what is purchased.

Choose from:

Opportunity cost

Choice

Consumption

Supply and demand

Price

Scarcity

Demand

Resources

Incentives

Production

Supply