| Term | Definition |
| capital | goods used to produce other goods and
services; it can also mean financial capital
or money Examples: tools, machinery, buildings,
money |
| capital goods | goods used to make or transport other
goods and services Examples: tools; machinery; factories;
facilities for storing, transporting, and
selling goods |
| consumer | an individual who buys and uses goods
and services |
| consumer goods | goods used for personal needs and
wants Examples: clothing, food, appliances,
automobiles |
| demand | the amount of goods or services that
consumers are willing and able to buy at
a given price |
| durable goods | goods that are not used up and do not
quickly wear out after they are
purchased Examples: automobiles, appliances,
furniture |
| economic rent | payment that people receive for the use
of resources that they own or control |
| economics | the study of people trying to satisfy
their wants in a world of scarcity |
| efficient | getting the job done with the least
amount of effort; producing the most
with the least amount of resources |
| entrepreneur | an individual who creates something
new and earns a profit by combining
land, labor, and capital resources to
produce goods and services |
| entrepreneurship | special talent some people have for
searching out new business
opportunities and developing new
products and new ways of doing things |
| financial capital | money used to buy factors of production
Examples: tools, machinery, buildings |
| goods | items that can be bought or sold that are
tangible (you can actually hold them in
your hands) and provide satisfaction;
sometimes referred to as products |
| labor | human effort, both mental and physical,that goes into the making of goods and
services |
| land | the geographic territory and natural
resources that go into the making of
goods and services Examples: fields, forests, minerals, water |
| necessity | goods or services considered essential to
a person’s well-being; a need |
| needs | goods and services that are necessities
Examples: food, clothing, shelter, medical
care |
| nondurable goods | goods that are used up or quickly wear
out after they are purchased
Examples: gasoline, food, clothing |
| opportunity cost | whatever is given up to get something
in return |
| resources | anything used to produce goods and
services; also known as factors of
production or productive resources
Examples: land (minerals, timber, rivers);
labor; capital
(machinery, buildings); and some
economists consider entrepreneurship |
| scarcity | limited resources for production in
relation to wants for goods and services |
| services | activities performed for others for
money; things that people want done
for them but are unwilling or unable to
do for themselves Examples: teaching, selling |
| supply | the amount of goods or services that
consumers are willing and able to
produce at a given price |
| trade-off | giving up one thing to gain another
when economic goals are in conflict |
| wants | goods and services that a consumer may
desire or want to buy but that are not
necessities |
