Commerce. Want: Something you would like to have but don’t need in order to survive. Need: Things we must have in order to survive. Scarcity: Our means (time, money, skills) are limited while our wants are unlimited. Means: Time, Skills and Money. Choices: A selection between alternatives made necessary because resources and means are scarce. Opportunity Cost: The next best alternative forgone when a decision is made. Goods: Things you can buy or use anything. (apples) Services: Something that is provided to help or make something easier for money. Free Goods: Goods that are free. (air) Economic Goods: Goods that are not free. (car) Capital Goods: Goods that are used to make other goods. (Subway Oven) Consumer Goods: Goods made for Consumers. (BBQ) Natural Resources: Resources that are natural. (trees) Renewable Resources: Resources that can be renewed. (trees) Non Renewable Resources: Resources that can not be used again or have take a very long time to be made again. (oil) Externalities: Something that is out of your control. Capital Resources: Resources that are made into goods. Human Resources: Workers. Entrepreneurs: Work for themselves, Get paid in profit. Production: The making of a good. Productivity: The amount of a good made per worker per a time frame. Specialisation: Getting someone that is good at something to do a job because he could do it faster and at a better quality. Division of Labour: Dividing labour into small jobs to increase production. Interdependence: When you depend on someone for something. Regional Trade: Trade in a country. International Trade: Trade between countries. Exports: Sending out. Imports: Bring in. Household Sector: The household sector is the eating, breathing, consuming population of the economy. Firms Sector: Needs consumers to buy thing in order to keep running. (sells Goods) Bank Sector: Borrow and lend money. Government Sector: The government sector includes all levels of government--federal, state, and local. These three levels intervene in the economy by collecting and spending tax revenue and by establishing and enforcing laws, rules, and other regulations. The government sector undertakes this intervention because society has deemed that the provision of some goods and services are better handled by the imposition of government than by voluntary market decisions. Overseas Sector: Import and Export Real flow: Is the money going to the firm when buying a good. Money Flow: Are the payments made for a good or service. Demand: How much of something is wanted. TALL: Title, Axes, Labels, and Lines. Law of Demand: The higher the demand the higher the price. Movement Along the Demand Curve: This means if it moves to the right the demand get higher if it moves to the left the demand get lower. Shift in Demand: Can be effected by seasons, money, taste, and population. Supply: The amount needed to full out the demand for a good. Law of Supply:as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa.