Economics Vocabulary: Chapter 1 Scarcity

want

A way to fulfill a need

labor

Human effort directed toward producing goods and services

capital

The resources used in the manufacturing, production, transportation, and distribution of products to the market

entrepreneur

A person who organizes, manages, and takes on the risks of a business.

scarcity

A situation in which unlimited wants exceed the limited resources available to fulfill those wants

need

Basic requirement for survival

factors of production

Land, labor, and capital; the three groups of resources that are used to make all goods and services

land

Natural resources that are used to make goods and services

good

Something that is produced, is tangible, and is transferrable to others

Basic Economic Questions

What, How, and For Whom to Produce

economics

study of how people and societies use limited resources to satisfy unlimited wants; the management of scarcity and choice

service

the action of helping or doing work for someone