Economics Terms

the branch of knowledge concerned with the production, consumption, and transfer of wealth

• economics

• scarcity

• resources

• choice

the inability to satisfy all wants at the same time. All resources and goods are limited. Limited goods and resources require that choices be made

• economics

• scarcity

• resources

• choice

factors of production that are used in the production of goods and services

• economics

• scarcity

• resources

• choice

selection of an item or action from a set of possible alternatives

• economics

• scarcity

• resources

• choice

what is given up when a choice is made (the second-best alternative)

• opportunity cost

• production

• consumption

• resources

the combining of human, natural, capital, and entrepreneurship resources to make goods or provide services

• opportunity cost

• production

• consumption

• resources

the using of goods and services

• opportunity cost

• production

• consumption

• resources

Economic decisions are based on custom and historical precedent

• traditional economy

• mixed economy

• command economy

• free market economy

based on supply and demand with little or no government control

• traditional economy

• mixed economy

• command economy

• free market economy

an economy in which production, investment, prices, and incomes are determined centrally by a government

• traditional economy

• mixed economy

• command economy

• free market economy