What is the definition of economics?
The study of how people provide, distribute, and use resources to fulfill needs and wants.
Term: Goods
Tangible objects that fulfill a need or want.
Term: Service
An action someone performs to provide for a need or want.
The relationship where groups are reliant on one another to provide goods or services is called _____.
Interdependence
How are ‘needs’ defined in an economic context?
Items and services that are necessary for survival.
How are ‘wants’ defined in an economic context?
Items that are desired but not required for survival.
What economic condition occurs when the demand for a good is greater than the supply?
Scarcity
What is the role of a producer in an economy?
To make and supply a good or service.
What is the role of a consumer in an economy?
To buy goods or services to satisfy needs and wants.
How is ‘exchange’ defined in the movement of goods?
The movement of goods and services between producers and consumers.
What term describes the situation where goods or services are overproduced?
Surplus
What is the economic result of having too little of a good or service available?
Shortage
Focusing on a specific job to make the production of goods more efficient is known as _____.
Specialization
Term: Trade
A relationship that involves the exchange of goods or services.
What is the primary goal of entrepreneurship?
To launch a new business that disrupts the market with a new idea or product.
In what way do people meet needs without using money?
By bartering or exchanging goods and services directly.
What are public goods?
Goods and services provided by the government.
How are human resources defined in production?
The people involved in creating a good or providing a service.
Where do natural resources come from?
The earth.
What are capital resources?
Human-made resources that assist in the production of goods or services.
Which factor of production includes natural resources like mountains or land?
Land
Which factor of production includes machinery, tools, and buildings?
Capital
Which factor of production represents human contributions to the creation of goods?
Labor
Which factor of production involves the organization of land, labor, and capital?
Entrepreneurship