Economics; The study of how people use limited resources to satisfy unlimited wants. Scarcity; The basic problem: resources are limited, but wants are unlimited. Choice; Deciding how to use resources. Opportunity Cost; The next best thing you give up when making a choice. Land; Natural resources (water, soil, minerals). Labor; Human effort, work, and skills. Capital; Tools, machines, and buildings used to produce goods. Entrepreneur; A person who starts a business by combining land, labor, and capital. Money; A medium of exchange with value, used to buy goods and services. Barter; Trading goods/services directly without money. Trade; Exchanging goods, services, or money. Market; Any place where buyers and sellers meet to exchange. Goods; Physical objects people buy (shoes, food, cars). Services; Actions people do for others (teaching, cleaning, driving). Consumer; A person who buys goods and services. Producer; A person or business that makes goods or provides services. Demand; How much people want a good or service. Law of Demand; When prices go up, people buy less; when prices go down, people buy more. Supply; How much of a good or service producers are willing to sell. Law of Supply; When prices go up, producers make more; when prices go down, they make less. Equilibrium; The price where supply and demand meet. Profit; Money left after costs are paid. Cost; The money needed to make or buy something. Revenue; Total money a business earns from selling. Competition; When businesses try to attract customers by offering better prices or products. Market Economy; An economy where decisions are made by individuals and businesses. Command Economy; An economy where the government makes most decisions. Mixed Economy; A system combining free markets and government control. Taxes; Money people pay to the government. Public Goods; Goods/services provided by the government for everyone (roads, schools, defense).

Economics

The study of how people use limited resources to satisfy unlimited wants.

Scarcity

The basic problem: resources are limited, but wants are unlimited.

Choice

Deciding how to use resources.

Opportunity Cost

The next best thing you give up when making a choice.

Land

Natural resources (water, soil, minerals).

Labor

Human effort, work, and skills.

Capital

Tools, machines, and buildings used to produce goods.

Entrepreneur

A person who starts a business by combining land, labor, and capital.

Money

A medium of exchange with value, used to buy goods and services.

Barter

Trading goods/services directly without money.

Trade

Exchanging goods, services, or money.

Market

Any place where buyers and sellers meet to exchange.

Goods

Physical objects people buy (shoes, food, cars).

Services

Actions people do for others (teaching, cleaning, driving).

Consumer

A person who buys goods and services.

Producer

A person or business that makes goods or provides services.

Demand

How much people want a good or service.

Law of Demand

When prices go up, people buy less; when prices go down, people buy more.

Supply

How much of a good or service producers are willing to sell.

Law of Supply

When prices go up, producers make more; when prices go down, they make less.

Equilibrium

The price where supply and demand meet.

Profit

Money left after costs are paid.

Cost

The money needed to make or buy something.

Revenue

Total money a business earns from selling.

Competition

When businesses try to attract customers by offering better prices or products.

Market Economy

An economy where decisions are made by individuals and businesses.

Command Economy

An economy where the government makes most decisions.

Mixed Economy

A system combining free markets and government control.

Taxes

Money people pay to the government.

Public Goods

Goods/services provided by the government for everyone (roads, schools, defense).