Term | Definition |
Competition | A rivalry between two or more businesses trying to sell products to the same customer or market |
Demand | Refers to how much (quantity) of a product or service is desired by buyers |
Economics | The study of how individuals and societies make decisions about production and consumption of goods and services |
Elasticity | Refers to how much the demand for an item changes based on a change in the price of that item Prices are considered to be elastic or inelastic |
Entrepreneur | A person who uses their ideas and takes risks in order to create a new business |
Entrepreneurship | - One of the factors of production that involves taking the actions and risks necessary to produce a new product or business |
Equilibrium | The price at which quantity demanded meets quantity supplied |
Exhaustible | A natural resource that is irreplaceable; when it’s used up it cannot be replaced |
Externalities | A side effect of an action that affects a third party other than the buyer or seller |
Factors of Production | The human, natural, and capital resources that are used to produce a product or service goods things that we consume to satisfy our wants and needs |
Goods | Products |
Incentives | An action or reward that motivates one to act a certain way |
Inelastic | The item is considered a necessity, so a price change does not significantly affect the demand of the item |
Inflation | An increase in the overall level of prices for goods |
Marginal Benefit | The satisfaction that one receives from one more unit of a good or service |
Marginal Cost | The additional effort or price of producing or using one more unit of a good or service. |
Money | Anything that is generally accepted as payment for goods and services |
Needs | Things that you must have to survive |
Opportunity Cost | The benefits you could have received by performing an alternative action to the one you chose to do |