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).
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