Glossary Terms:

One of many choices or courses of action that might be taken in a given situation.

Decision made or course of action taken when faced with a set of alternatives.

Government-issued pieces of metal that have value and are used as money.

A result or effect of an action or decision; may be positive or negative.

Costs and/or benefits of a choice that will be paid or gained at a later time.

Tangible objects that satisfy economic wants.

Anything that is generally accepted as final payment for goods and services; serves as a medium of exchange, a store of value and a standard of value. Characteristics of money are portability, stability in value, uniformity, durability and acceptance.

The basic kinds of resources used to produce goods and services: land or natural resources, human resources (including labor and entrepreneurship), and capital.

The condition that exists because human wants exceed the capacity of available resources to satisfy those wants; also a situation in which a resource has more than one valuable use. The problem of scarcity faces all individuals and organizations, including firms and government agencies.

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

Desires that can be satisfied by consuming or using a good or service. Economists do not differentiate between wants and needs.