#separator:tab #html:false #tags column:4 Economics The study of how people make choices about limited resources economics-vocabulary Scarcity Not having enough resources to meet everyone's wants economics-vocabulary Resources Land, labor, capital and entrepreneurship used to make goods and services economics-vocabulary Natural resources Materials from nature, like water, oil and soil economics-vocabulary Labor Human work, both physical and mental economics-vocabulary Capital Tools, machines and buildings used to make goods economics-vocabulary Entrepreneur A person who starts a business and takes risks economics-vocabulary Needs Things required to live, like food and shelter economics-vocabulary Wants Things we desire but do not need economics-vocabulary Goods Physical products that satisfy wants economics-vocabulary Services Work done for others economics-vocabulary Consumer A person who buys and uses goods and services economics-vocabulary Producer A person or business that makes goods or services economics-vocabulary Opportunity cost The next best thing you give up when you make a choice economics-vocabulary Trade-off Giving up one thing to get another economics-vocabulary Incentive Something that motivates people to act economics-vocabulary Supply How much of a good sellers are willing to offer at each price economics-vocabulary Demand How much of a good buyers are willing to buy at each price economics-vocabulary Law of demand When price rises, quantity demanded falls economics-vocabulary Law of supply When price rises, quantity supplied rises economics-vocabulary Equilibrium price The price where supply equals demand economics-vocabulary Shortage When demand is greater than supply economics-vocabulary Surplus When supply is greater than demand economics-vocabulary Price The amount of money asked for something economics-vocabulary Market Place or system where buyers and sellers trade economics-vocabulary Competition Businesses trying to win customers by offering better prices or quality economics-vocabulary Monopoly When only one business sells a product economics-vocabulary Profit Money left after paying all costs economics-vocabulary Revenue Money a business takes in from sales economics-vocabulary Cost What it takes to make or buy something economics-vocabulary Fixed cost A cost that stays the same, like rent economics-vocabulary Variable cost A cost that changes with output, like materials economics-vocabulary Wage Pay for work economics-vocabulary Salary Fixed pay for a job, usually yearly economics-vocabulary Income Money received by a person or household economics-vocabulary Budget A plan for earning, saving and spending money economics-vocabulary Saving Setting money aside for later economics-vocabulary Investment Putting money into something expecting it to grow economics-vocabulary Interest Money paid for borrowing, or earned on savings economics-vocabulary Credit Borrowing money or buying now to pay later economics-vocabulary Debt Money that is owed economics-vocabulary Loan Money borrowed that must be repaid economics-vocabulary Bank Business that holds money and makes loans economics-vocabulary Inflation A general rise in prices over time economics-vocabulary Deflation A general fall in prices economics-vocabulary Recession A period when the economy shrinks economics-vocabulary Depression A very severe, long economic downturn economics-vocabulary GDP Gross domestic product: total value of goods and services a country produces in a year economics-vocabulary Unemployment When people who want jobs cannot find them economics-vocabulary Tax Money paid to the government economics-vocabulary Tariff A tax on imported goods economics-vocabulary Trade Exchange of goods and services economics-vocabulary Import A good bought from another country economics-vocabulary Export A good sold to another country economics-vocabulary Barter Trading goods directly without money economics-vocabulary Specialization Focusing on producing one thing economics-vocabulary Division of labor Splitting work into tasks economics-vocabulary Productivity Output per worker or per hour economics-vocabulary Free market Economy where buyers and sellers decide what to produce and at what price economics-vocabulary Command economy Government makes most economic decisions economics-vocabulary Mixed economy Combination of private choice and government action economics-vocabulary Traditional economy Decisions based on custom and habit economics-vocabulary Capitalism System based on private ownership and profit economics-vocabulary Socialism System where the community or government owns major industries economics-vocabulary Private property Goods and land owned by individuals economics-vocabulary Public goods Things everyone shares, like roads and parks economics-vocabulary Externality A side effect of an activity that affects others, like pollution economics-vocabulary Subsidy Government money to help support an industry economics-vocabulary Regulation Government rules for businesses economics-vocabulary Stock A share of ownership in a company economics-vocabulary Bond A loan to a company or government that pays interest economics-vocabulary Stock market Place where shares in companies are bought and sold economics-vocabulary Entrepreneurship Starting and running a business economics-vocabulary Standard of living How well people live based on goods, services and money economics-vocabulary Global economy Trade and money flows connecting countries economics-vocabulary Globalization Increasing connections among economies worldwide economics-vocabulary