Economics Vocabulary Study Guide

Economics Vocabulary Study Guide
Test Date: ________________
1. goods—items that can be bought or sold; can be held or touched
2. services—activities done for others
3. land—resources found in nature
4. labor—any worker
5. capital goods—human-made materials needed to produce goods and
6. entrepreneurship—someone who starts, plans, or puts money into a
7. division of labor—when labor (workers) specialize in what they do
8. profit—the money left over after all costs have been met
9. opportunity cost—(lost!) losing the opportunity to produce something
10. human resources—the talents and skills of human beings that
contribute to the production of goods and services
11. natural resources—productive resources supplied by nature
12. scarcity—not having enough (1) money to buy goods or services (2)
goods or services to buy (3) factors of production to produce goods and
13. production—making goods or providing services
14. consumption—buying or using goods and services
15. specialization—making what you make best
16. agricultural—things grown or produced on farms
17. manufactured—things produced in factories
18. budget—a plan for your money
19. income—money earned from a job
20. supply—how much of a good or service is available
21. demand—how much of a good or service is desired by consumers