Economic+Definitions

1. Supply - The amount of products you have.

2. Demand- The quantity of a good a person will buy for a period of time.

3. Scarcity-The conditions that exist because the demand exceeds the quantity available.

4. Producer- People and firms that use resources to make goods and services.

5. Consumer- People who use goods and services to satisfy their personal needs and not for resale or in the production of other goods and services.

6. Goods- Objects that satisfy economic wants.

7. Services- Activities performed by people, firms or government agencies to satisfy economic wants.

8. Entrepreneur- One who draws upon his or her skills and initiative to launch a new business venture with the aim of making a profit.

9. Cost- An amount that must be paid or spent to buy or obtain something.

10. Opportunity Cost- The second-best alternative that must be given up when scarce resources are used for one purpose instead of another.

11. Competition- Attempts by two or more individuals or organizations to acquire the same goods, services or productive and financial resources.

12. Income- Payments earned by household for selling or renting their productive resources.

13. Expenditure- Goods and services provided by government and paid for by taxing and borrowing.

14. Barter-Trading a good or service directly for another good or service, without using money or credit.

15. Inventory- An itemized list of goods held by a person our business.

16. Invest- The process of putting money someplace with the intention of making a financial gain.

17. Material- Physical properties, which are used to make different materials with different properties.

18. *Capitalism- An economic system in which wealth, and the means of producing wealth, are privately owned and controlled rather than commonly, publicly, or state owned and controlled.

19. *Socialism- Refers to a broad set of economic theories of social organization advocating public or state ownership and administration of the means of production and distribution of goods, and a society characterized by equal opportunities for all individuals, with a fair or egalitarian method of compensation.

20. *Communism- A system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political part.