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    Master this deck with 62 terms through effective study methods.

    Imported from Quizlet

    Created by @thatgirl

    Scarcity

    Limited resources compared to unlimited wants.

    Economics

    The study of how people make choices because of scarcity.

    Opportunity Cost

    The next best alternative you give up when making a choice.

    Trade-Off

    Giving up one thing to get another.

    Goods

    Physical products that can be touched.

    Services

    Activities done for someone else.

    Consumer

    A person who buys goods or services.

    Producer

    A person or business that makes goods or services.

    Natural Resources

    Materials from nature used to make goods.

    Human Resources

    Workers and their skills.

    Capital Resources

    Tools and machines made by humans.

    Supply

    The amount of a product producers are willing to make.

    Demand

    The amount of a product consumers are willing to buy.

    Law of Demand

    When price goes up, demand goes down; when price goes down, demand goes up.

    Law of Supply

    When price goes up, supply goes up; when price goes down, supply goes down.

    Equilibrium Price

    The price where supply and demand meet.

    Market Economy

    An economy where businesses are privately owned and prices are set by supply and demand.

    Command Economy

    An economy where the government controls production and prices.

    Mixed Economy

    An economy combining government involvement with market forces.

    Entrepreneur

    A person who starts a business and takes risks.

    Profit

    Money left over after expenses (Revenue - Expenses).

    Revenue

    Total money a business earns.

    Expenses

    Costs required to operate a business.

    Budget

    A plan for spending and saving money.

    Income

    Money earned from work or investments.

    Savings Account

    A bank account used to save money over time.

    Checking Account

    A bank account used for everyday transactions.

    Interest

    Money earned or paid for the use of money.

    Debt

    Money owed to someone else.

    GDP (Gross Domestic Product)

    Total value of goods and services produced in a country.

    Inflation

    An increase in overall prices.

    Unemployment Rate

    The percentage of people who are looking for work but cannot find a job.

    Specialization

    Focusing on making one product or service well.

    Trade

    The exchange of goods and services between people or countries.

    Taxes

    Money citizens pay to the government.

    Sales Tax

    Tax on purchased goods.

    Income Tax

    Tax taken from earnings.

    Property Tax

    Tax on land or homes.

    Monopoly

    A market with only one seller.

    Competition

    Many businesses selling similar products.

    Public Goods

    Goods provided by the government for everyone (roads, schools).

    Market Price

    The price at which buyers and sellers agree

    Economics

    The study of how individuals and societies allocate scarce resources to satisfy unlimited wants.

    Supply and Demand

    A fundamental economic model that describes how prices are determined in a market based on the relationship between the quantity of a good available and the desire for that good.

    Opportunity Cost

    The value of the next best alternative that is forgone when making a decision.

    Market Economy

    An economic system where decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

    Scarcity

    The basic economic problem that arises because resources are limited while human wants are unlimited.

    Gross Domestic Product (GDP)

    The total monetary value of all finished goods and services produced within a country's borders in a specific time period.

    Inflation

    The rate at which the general level of prices for goods and services rises, eroding purchasing power.

    Monetary Policy

    The process by which a central bank manages the money supply and interest rates to influence the economy.

    Fiscal Policy

    The use of government spending and taxation to influence the economy.

    Entrepreneurship

    The process of starting and running one's own business, often involving risk and innovation.

    Trade Balance

    The difference between a country's exports and imports of goods and services.

    Consumer Price Index (CPI)

    A measure that examines the weighted average of prices of a basket of consumer goods and services, used to assess price changes associated with the cost of living.

    Labor Market

    The supply of available workers in relation to the demand for those workers.

    Capital Goods

    Tangible assets that a company uses in the production process to manufacture products and services.

    Free Market

    An economic system where prices are determined by unrestricted competition between privately owned businesses.

    Public Goods

    Goods that are non-excludable and non-rivalrous, meaning they are available for all to consume regardless of who pays for them.

    Economic Incentives

    Factors that motivate individuals and businesses to make decisions in the marketplace.

    Budget

    A financial plan that outlines expected income and expenditures over a specific period.

    Investment

    The action or process of allocating resources, usually money, in order to generate income or profit.

    Human Capital

    The economic value of the skills, knowledge, and experience possessed by an individual or population.