Definitions

Economics Terms Define the following:

1. Supply- How much there is of something

2. Demand- How much people wanted

3. Scarcity- A lack of a product because the people have exceeded the amount of available resources

4. Producer- The person or people who make products

5. Consumer- People who buy the products that are being sold

6. Goods- Products that are available for people to buy

7. Services- Any activities that are performed by the people an the government to answer the economic needs

8. Entrepreneur- A person who makes up a business or service using his or her skills with the idea of making money

9. Cost- any amount of money that is paid for a specific product or item

10. Opportunity Cost- The cost of an alternative that must be forgone in order to pursue a certain action

11. Competition- Two or more people who sell the same goods as different businesses

12. Income- An amount of money that people earn in return for their work or services

13. Expenditure- Products that are paid for by the government form borrowing and taxing

14. Barter- Service for products traded for a another product or service

15. Inventory- an list of products that are in stock

16. Invest- using money in something as bonds, real estate, in the intention of making money of it in the long run

17. Material- A substance that is made into a product which can be used and sold

18. *Capitalism- a system where investment and ownership of production is maintained by individuals or corporations

19. *Socialism- A social organization that advocates the ownership and control of production and distribution

20. *Communism- A system of social organization based on the holding of all property in ownership to the community as a whole or to the state