Economic Terminology and Production

Want: desires that can be satisfied by consuming a good or service. (Wants are unlimited/changing/not necessary for survival)
Needs: things that are necessary for survival (food, water, shelter, clothing—many would add medical care, love)
Goods: objects that can be bought
Services: work that one person does for another
Scarcity: having unlimited wants, but limited resources to satisfy them
Resources: in economic terms, it means the basic elements from which all goods and services are produced: land, labor, capital, entrepreneurship.
Inputs: another term for the 4 resources, but also includes anything made with the resources that is used to make something else…cement, steel, lumber, plastic would be considered inputs

Land: all the natural resources found on or under the ground that are used to produce goods and services
Entrepreneurship: the combination of vision, skill, ingenuity, willingness to take risks that is needed to create and run new businesses
Capital: all the physical resources made and used by people to produce and distribute goods and services
Labor: all the human, time, effort, and talent that go into the production of goods and services