Economics Vocabulary

Describes how a group of people decide what to make, how to make it, and for whom to make it.

• Government

• Economics

• Command

• Legend

The knowledge and skills (education) that allow workers to produce goods and services and earn a salary.

• Entrepreneurship

• Human Capital/Labor

• Capital Goods/Physical Capital

• Natural Resources

Goods such as factories, machines, and tools that workers use to make other goods.

• Entrepreneurship

• Human Capital/Labor

• Capital Goods/Physical Capital

• Natural Resources

Raw materials used to support life and make goods

• Entrepreneurship

• Human Capital/Labor

• Capital Goods/Physical Capital

• Natural Resources

People who take a risk to start their own business.

• Entrepreneurship

• Human Capital/Labor

• Capital Goods/Physical Capital

• Natural Resources

Tangible (touchable) objects that satisfy economic wants.

• Goods

• Services

• Consumer

• Producer

Activities performed by people to satisfy economic wants.

• Goods

• Services

• Consumer

• Producer

Someone who uses resources to make a good or service.

• Goods

• Services

• Consumer

• Producer

Someone who buys or trades a good or service.

• Goods

• Services

• Consumer

• Producer

The percentage of people who can read and write in a country.

• Imports

• Exports

• Gross Domestic Product (GDP)

• Literacy Rate