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Chapter 3 Section 1

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Term
Definition
Needs   basic things necessary for all humans like air, food, clothing, and shelter  
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Wants   things that would make lives more comfortable or enjoyable  
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Goods   tangible items (things you can touch)  
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Services   work or activities people perform, often for a fee  
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Consumer   a person who satisfies a need or want by buying a good or service  
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Producer   a person or group of people who use resources to make goods or provide services  
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Factors of Production   things needed to produce goods and services, examples; natural resources, capital goods, human capital, and entrepreneurs  
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Natural Resources   something that comes from earth or nature that is useful to humans  
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Renewable   able to replenish itself over time  
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Nonrenewable   unable to replenish itself  
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Capital Goods   tools used in the production of goods and services  
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Human Resources   people who produce goods or services  
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Specialization   when a country focuses on producing goods and services they can make best and trading for what they are unable to produce (2) becoming an expert in one part of a larger business  
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Entrepreneurship   the ability to organize, manage, and take on the risks of a business or enterprise  
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Profit   the amount left after costs are subtracted from price  
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Income   money taken in; the source could be a gift or prize, money earned for performing a task, an allowance, earnings at a job, or earnings from an investment.  
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Expenses   cost related to a business (2) the spending of some income for various needs and wants  
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