Understanding Economic Concepts and Costs

a resource used to produce a good or service

• economic activity

• benefit

• productive resource

• income

money that is earned from work or investments

• scarcity

• trade

• income

• cost

something that is lost or given up in the process of getting something else

• trade

• benefit

• voluntary exchange

• cost

the value of what you have to give up in order to choose something else

• productive resource

• opportunity cost

• standard of living

• voluntary exchange

to trade willingly in a way that benefits both sides

• voluntary exchange

• trade

• productivity

• income

the use of resources to buy, sell, produce, or consume goods and services

• economic activity

• opportunity cost

• productive resource

• budget

the measure of a nation's quality of life based on income, education, life expectancy, and other factors

• benefit

• productivity

• standard of living

• economic activity

the buying and selling of goods and services

• income

• voluntary exchange

• trade

• scarcity

something advantageous or positive, especially as a result of a decision

• standard of living

• budget

• income

• benefit

the lack of resources to provide everything that is needed or wanted

• income

• scarcity

• benefit

• economic activity