Economic Terms

Barter

When people exchange goods and services directly instead of using money.

Scarcity

When people’s wants exceed the resources available to satisfy them.

Tradeoffs

Making one choice means the other choices are no longer available (because of scarcity).

Axiom

The starting assumptions or foundations in a deductive system. Not proved, but assumed to be true in order to prove other, less obvious statements.

Economic resource

At zero price, there is greater demand than supply.