1. Economics Vocabulary

2. Incentives
things that incite or motivate you to change your economic behavior

3. Consumer sovereignty
consumers determine through purchases what goods and services will be produced

4. Price
the amount of money exchanged for a good or service

5. Profit
consists of earning after all expenses have been paid

6. Circular flow
resources, goods, services, and money flowing throughout the economy

7. Opportunity cost
what is given up when a choice is made- the highest valued alternative

8. Sole proprietorship
a business owned by one person who takes all of the risks and all of the profits

9. Private property
property owned by individuals and businesses for use without undue interference by the government

10. Resources
factors of production that are used in the production of goods and services

11. Production
the combining of human, natural, capital, and business resources to make goods and services

12. Entrepreneur
a person who takes a risk to produce goods and services in search of a profit

13. Scarcity
the inability to satisfy all wants at the same time

14. Competition
rivalry between producers and sellers of goods and services that results in better quality goods and services at a lower price

15. Human resources
time, energy, and skills needed to produce goods and services

16. Corporation
a large business with many owners called stock holders

17. Natural resources
the resources from the land that are needed to produce goods and services

18. Consumption
using goods and services

19. Choice
selecting an item or action from a set of alternatives

20. Partnership
a form of business owned by 2 or more individuals who share all of the risks and profits

21. Capital resources
the tools, machinery, factories and money that are used in providing goods and services

22. Supply
the amount of a good or service that producers are willing and able to sell at a certain price

23. Demand
the amount of a good or service that consumers are willing and able to buy at a certain price

24. Consumer
people who buy and use products

25. Producer
people who use resources to provide goods and services

26. Economy
the management of the resources of a country