Economics Unit 1: Fundamentals of Economics Vocabulary

Scarcity

the demand for a good or service is greater than the availibility of the goods or services

Needs and Wants

needs are things needed for human survival while wants are the extras

Trade-off

a sacrifice that must be made to get a certain product or experience

Opportunity cost

cost that one must sacrifice in order to obtain a desired product.

Durable good

goods that do not need to be purchased very often and last for at least three years

Nondurable good

any consumer goods in an economy that are either consumed in one use or used up over a short period of time

Consumer good

any good purchased for consumption and not used later to produce another consumer good

Capital good

physical assets or resources that are used in the production of goods and services

Service

an act or use for which a consumer, company, or government is willing to pay

Value

Utility

Productivity

Self-sufficiency

Free enterprise

Mixed economy

Competition