Economics Vocabulary

5. A condition where different economic firms seek to obtain a limited good by varying the elements of market.
7. An increase in the overall level of prices for goods.
8. A natural resource that is irreplaceable and when it’s used up it cannot be replaced.
11. Items that satisfy human wants and provide utility.
12. An individual who creates their own business despite the risks they may face.
14. benefit, The maximum amount a consumer will pay for an additional good or service. It generally decreases as consumption increases.
15. The item is considered a necessity so when prices change the demand will still be high or the same.
17. Things that you need to function and live in the world.
19. Floor, The minimum price imposed by the government or agency, for a particular product or service.
21. cost, The benefits you could have received by performing an alternative action to the one you chose to do.
22. A set of external motivators that explain people’s choices.
24. Refers to how much quantity of a product or service is desired by buyers.
26. Actions used to satisfy your wants and needs.

1. The branch of knowledge concerned with the production, consumption, and transfer of wealth.
2. A recognized medium of exchange for transactional purposes in the economy.
3. The activity of setting up a business and taking financial risks in the hope for profit.
4. What consumers desire and it is distinguished from needs.
6. of production, They are labor, capital, entrepreneur, and natural resources.
9. Refers to the degree to which consumers or producers change their demand or the amount supplied in response to price changes.
10. cost, The change in total production cost that comes from making or producing one additional unit.
13. It can be used or over and over again.
16. The state in which market supply and demand balance each other.
18. A side effect of an action that affects a third party other than the buyer or seller.
20. The tension between infinite wants and finite resources.
23. The total amount of a specific good or service that is available to the consumer.
25. Ceiling, A legal maximum price that one pays for some good or service. Governments impose price ceilings in order to keep the price of necessary goods or services affordable.