The process or activity of using goods and services; The economic process or activity of using goods and services.

Consumption

The economic process or activity by which income is divided among resource owners and producers.

Distribution

Physical objects that are useful, scarce, and transferable and which satisfy economic wants.

Economic Goods

The human and natural resources and capital goods used to produce goods and services (also called factors of production)

Economic Resources

Productive acts that are useful, scarce, and transferable and which satisfy economic wants.

Economic Services

A desire for something that can only be satisfied by spending money.

Economic Want

The study of how to meet unlimited, competing wants with limited resources.

Economics

A form of demand for products in which changes in price correspond to changes in demand.

Elastic demand

An indication of how changes in price will affect changes in the amounts demanded and supplied.

Elasticity

The point at which the quantity supplied is equal to the quantity demanded.

Equilibrium

The situation that exists when demand is greater than supply.

Excess Demand

The situation that exists when supply is greater than demand.

Excess Supply

The economic process of trading one good/service for another.

Exchange

Productive resources; human and natural resources and capital goods (also known as economic resources)

Factors of production

People who work to produce goods and services.

Human resources

Products purchased by producers for resale, to make other goods and services, and/or to use in business operations.

industrial goods and services

A form of demand in which changes in price do not affect demand.

Inelastic demand

Economic principle which states that the quantity of a good/service that people will buy varies inversely with the price.

Law of demand

Economic principle stating that the quantity of a good/service that will be offered for sale varies in relation price.

Law of supply

Economic principle stating that supply of a good/service will increase when demand is great & decrease when demand is low.

Law & Supply of Demand

The benefit that is lost when you decide to use scarce resources for one purpose rather than for another.

Opportunity cost

Giving up all or a part of one thing in order to get something else.

Trade off

A condition resulting from the gap between limited resources and unlimited wants for goods and services.

Scarcity

The amount of money paid for a good, service, or resource.

Price

The heart of economics is.

Decision making

Marcy is ready to buy a new computer, and she has saved up enough money to buy the model she wants. This is an example

Demand

Which of the following is characteristic of a seller’s market:

High Prices

Marc wants to figure out how much changes in price will affect his business’s sales, so he pays attention to

Elasticity

Which of the following might cause supply of a good to decrease:

Government regulations

What usually happens to the demand for a good or service when the price increases?

It decreases

What do producers often do when supply is greater than demand?

Lower prices

Any factor that causes changes in supply and demand will cause changes in

Price

Excess demand and excess supply cause changes in

Market price