Economics Review

Someone who buys or pays for a good or service.

• Producer

• Consumer

Someone who creates a good or service for others to buy or use.

• Producer

• Consumer

An economic condition that exists when demand is greater than supply.

• Scarcity

• Consumer

• Producer

• Opportunity Cost

To be successful, a business must produce

• Goods and services that are of low quality

• Goods and services that are not needed

• Goods and services that people want

• Goods and services with a low price

TRUE OR FALSE: Opportunity cost is the value of what you give up because you choose to do or buy something else.

• True

• Not True

Land, fuel, water, and minerals are this kind of resource:

• Human Resources

• Capital Resources

• Natural Resources

Money, buildings, and equipment are this kind of resource:

• Human Resources

• Capital Resources

• Natural Resources

The amount of a product or service that is available.

• Demand

• Supply

The amount of a product or service that people want and are willing to pay for.

• Supply

• Demand

Things you MUST have to survive:

• Needs

• Wants