Economic+Words

Economics Terms Define the following:

Supply - The amount of an item that a person has.

Demand - The amount of goods a person is willing to buy at all possible prices.

Scarcity - A condition that exists because people wants exceed that amount of available resources to satisfy their needs.

Producer - People or businesses that use resources to make products or services.

Consumer - People who use products or services to satisfy their needs.

Goods - Objects that satisfy peoples wants

Services - Activites performed by people, businesses, or government agencies to satisfy peoples need.

Entrepreneur - A person who draws upon his or her skills to launch a business in hope to gain profit.

Cost - The amount a product costs to purchase the item

Opportunity Cost - An alternative that is given up when scarce resources are used for one purpose instead of another.

Competition - Another person or business that sells the same product, but compete against each other to be the best.

Income - The amount of money a person makes from their product or service.

Expenditure - Goods and services provided by the government and paid by the taxes people pay and by borrowing.

Barter - Trading a product or service for another product without using any type of money or credit.

Inventory - A list of goods held by a person or business and/or a quantity of goods held in stock.

Invest - Putting money into someplace in hoping to gain profit from what you put in.

Material - What a person or business uses to create their product or services.


 * Capitalism - An economic system in which investments go in and ownership is gained for a production, distribution, and exchange of wealth.


 * Socialism - A theory or system of social organization that advocates the vestion of ownership to control the means of production.


 * Communism - A system in which social organizations based on the holdings of all property in common, acual ownership being assigned to the community as a whole.