1. ECONOMIC TERMINOLOGIES
CIVICS
CE.9A
MR. COLLINS & MRS. KOZLIK

2. SCARCITY
SCARCITY IS THE INABILITY TO SATISFY ALL THE WANTS AT THE SAME TIME.
ALL RESOURCES AND GOODS ARE LIMITED.
THIS REQUIRES THAT CHOICES BE MADE.

3. RESOURCES
FACTORS OF PRODUCTION THAT ARE USED IN THE PRODUCTION OF GOODS AND SERVICES
TYPES OF RESOURCES INCLUDE NATURAL, HUMAN, CAPITAL, AND ENTREPRENEURSHIP

4. CHOICE
SELECTING AN ITEM OR ACTIONS FROM A SET OF POSSIBLE ALTERNATIVES
INDIVIDUALS MUST CHOOSE/MAKE DECISIONS ABOUT DESIRED GOODS AND SERVICES BECAUSE THE GOODS AND SERVICES ARE LIMITED

5. OPPORTUNITY COST
IS WHAT IS GIVEN UP WHEN A CHOICE IS MADE. THE HIGHEST VALUED ALTERNATIVE
INDIVIDUALS MUST CONSIDER WHAT IS GIVEN UP WHEN MAKING A CHOICE.

6. PRICE PRICE IS THE AMOUNT OF MONEY EXCHANGED FOR A GOOD OR SERVICE.
INTERACTION OF SUPPLY AND DEMAND DETERMINES PRICE.
PRICE DETERMINES WHO ACQUIRES GOODS AND SERVICES.

7. INCENTIVES THINGS THAT INCITE OR MOTIVATE US.
INCENTIVES ARE USED TO CHANGE ECONOMIC BEHAVIOR.
EXS: SALES
EXS: INTEREST RATES

8. SUPPLY DEMAND
The amount of a good or service that producers are willing and able to sell at a certain price
The amount of a good or service that consumers are willing and able to buy at a certain price

9. REVIEW SUPPLY AND DEMAND:
IF THE SUPPLY (AMOUNT) OF A GOOD OR SERVICE IS HIGH AND THE DEMAND (WANT) IS LOW, PRICES WILL DROP
IF THE SUPPLY (AMOUNT) OF A GOOD OR SERVICE IS LOW AND THE DEMAND (WANT) IS HIGH, THEN PRICES WILL RISE

10. PRODUCTION
COMBINING OF HUMAN, NATURAL, CAPITAL, AND ENTREPENEURSHIP RESOURCES TO MAKE GOODS OR PROVIDE SERVICES
RESOURCES AVAILABLE AND CONSUMER PREFERENCES DETERMINE WHAT IS PRODUCED

11. CONSUMPTION
CONSUMPTION IS USING GOODS AND SERVICES. CONSUMER PREFERENCES AND PRICE DETERMINE WHAT IS BOUGHT.