The Basic Problems in Economics.
Services
Actions that can satisfy people's wants or needs. Often activities that are done for a fee. For example, doctors, hairdressers, and dentists.
Scarcity
Basic economic problem that results from a combination of limited resources and unlimited wants. This means that people do not have enough income, time, and other resources to satisfy their every want.
Macroeconomics
Deals with the economy as a whole and decision making by large units such as governments and societies.
Labor
Human effort directed toward producing goods and services.
Want
Includes anything other than what people need for basic survival. For example, Tv's, DVD's, and cellphones.
Economics
Is the study of how individuals, families, businesses, and societies use limited resources to fulfill their unlimited wants.
Choices
Making decisions in a world of limited resources, which work toward satisfying individuals' wants.
Capital
Manufactured goods used to produce goods and services. For example, machines, buildings, and tools.
Land
Natural resources that exist without human intervention. Includes actual surface land and water, as well as fish, animals, and trees.
Factors of Production
Resources of land, labor, capital, and entrepreneurship used to produce goods and services.
Goods
Tangible objects that can satisfy people's wants or needs.
Shortage
Temporary unavailability of a good or service. Often caused by natural disasters. For example, hurricanes, floods, and fires.
Microeconomics
The branch of economics that deals with the behavior and decision making of individuals and businesses.
Productivity
The rate at which goods and services are produced.
Technology
The use of science to develop new products and new methods for producing and distributing goods and services more efficiently.
Need
Things people need to survive. For example, water, shelter, and food.
Entrepreneurship
When individuals take risks to develop new products and start new businesses in order to make a profit.
