Economics: Standard 1 - Scarcity

economics

the study of how individuals and societies satisfy their unlimited wants with limited resources

microeconomics

the study of the behavior of individual players—such as individuals, families, and businesses—in an economy

macroeconomics

the study of the behavior of the economy as a whole; concerned with large-scale economic activity

land

all the natural resources on or under the ground that are used to produce goods and services

labor

all the human time, effort, and talent used to produce goods and services

capital

all the resources people make and use to produce and distribute goods and services

entrepreneurship

the combination of vision, skill, ingenuity, and willingness to take risks that is needed to create and run new businesses

market economy

an economic system based on individual choice and voluntary exchange

traditional economy

an economic system in which people make economic decisions based on customs and beliefs that have been handed down from one generation to the next

command economy

an economic system in which the government makes all economic decisions

mixed economy

an economic system that has elements of traditional, command, and market economies; the most common economic system

privatize

to change from government or public ownership to private ownership

nationalize

to change from private ownership to government or public ownership

incentive

a benefit offered to encourage people to act in a certain way