Glossary Terms:

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

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.

In a credit arrangement, the total amount spent during the billing cycle.

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.