Scarcity means that you can't always have what you want because you don't have what is needed for it.

In other words, we can't have everything because our supplies are limited. Like how you can only spend $4 if you have $4 to spend.

Factors of production are the types of supplies needed to make something.

An example of a factor of production is a tree, it is a factor because it can be cut down and used to produce things

A trade-off is when you give up something you want for something you want more.

A good example of this is when you might be at the store and want two items. Each item costs $5 but you can only get one because you only have $5.

Capitalism is where both production and any associated trade is privately owned.

This means that rather that we rather than the government control the creation of goods like foods and such as well as the trade of them.