Unit 12 Economics Vocabulary Review Flashcards
(22 cards)
Things that can be used to increase profit or production (money, cars, or workers)
Resource
The amount of goods or services that are available for sale.
Supply
Someone who hires workers and pays wages; like a boss
Employer
A shortage or goods or services
Scarcity
Providing one kind of product or service. For example: NIKE- shoes
specialization
Economy in which people make business decisions, not the government. People choose what to make or buy.
Free Market
The total amount of things that a group of workers can produce.
Productive capacity
What you are willing to give up in order to buy something else (wants versus needs)
opportunity cost
Tools needed for makin things (tractors, computers)
Capital goods
Rivalry between two businesses to get more customers.
Competition
Money paid to the government
Tax
People use money from this account to pay for expenses like bills, food, and clothes
Checking account
Going to different stores to find the best price.
Comparison shopping
The desire people have to buy a product or service.
Demand
A tax paid on your labor
income tax
Different workers do different parts of the job
Division of Labor
Money that you borrow from the bank; it must be paid back with interest.
Loan
Trading one item for another. For example, you trade money for food
Voluntary exchange
Rate which is charged or paid for the use of money (the bank pays you this money for keeping your money in their bank)
Interest
A plan for using your money wisely to meet your needs and some wants
Budget
The amount a business charges for an item; it includes how much it costs to make and advertise.
Price
a fee charged on things people buy, this money goes to the government, it is a percentage of what the item costs
sales tax
