Economics Vocabulary

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Economics Vocabulary
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Economics

• The science that deals with the ways in which
  goods and service are produced, sold, and used.
• Orthe study of scarcity

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Demand

• The numbers of a good or service that consumers
  are willing and able to buy at various prices

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Supply

• The numbers of a good or service that producers
  are willing and able to provide or sell at
  various prices

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Law of Supply and Demand

• When there is too large a supply or low demand of
  a certain good, the price usually decreases.
• When there is a high demand for a limited supply,
  the price increases.

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Good

• Objects that are capable of satisfying peoples
  wants

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Service

• Actions that are capable of satisfying peoples
  wants

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Productive Resources

• The resources used to make goods and services,
  including natural resources, human resources,
  capital goods

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Entrepreneur

• A person who organizes the use of productive
  resources to produce goods or services
• (economic decision maker)
• Starts a business

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Natural Resources

• A productive resource supplied by nature such as
  ores, trees, fertile land, water

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Human Resources

• A productive resource consisting of the talents
  and skills of people that contribute to the
  production of goods and services

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Capital Goods

• A productive resource consisting of human made
  materials needed to produce goods and services