Chapter 1- Key Terms Flashcards
Demand
Quantity the consumer is willing to buy
Economic decision-making
Choosing which needs and wants will be satisfied
Economic resources
Things available to produce services and goods
Command economy
Controlled by the government
Economic system
To answer the 3 questions
3 questions every society must know
1.Who consumes the goods and
services
2. What goods and services should be produced
3. How should goods and services be produced
Consumer
A person who purchases goods and services
Capitalism
Private ownership of economic resources by individuals
Goods
Products you can see/touch
Market economy
Owned/controlled by the people
Needs
Things required to live
Mixed economy
Market economy + Command economy
Opportunity cost
The value of the next best alternative
Producers
People who invent or supply the goods/services
Scarcity
Not having enough recourses to satisfy needs and wants
Services
Activities provided for satisfaction
Traditional economy
The way it has always been
Wants
To improve quality of life, to make life better.
Market price
Where supply and demand are equal
Trade-off
Give up something for something else
Supply
Quantity of a good/service
Bond
Certificate representing a promise to pay a definite amount of money at a stated interest rate on a specified due date.
Budget deficit
financial situation that occurs when the government spends more than it takes in.
Budget Surplus
when the government spends less than it takes in, usually leads to decreased taxes and more money is spent on programs.
Business cycle
Movement of the economy from one condition to another
Prosperity -> Recession -> Depression -> Recovery
Capital Project
spending money for the city
Deflation
The decrease in general prices.
Depression
Unemployment, rates low, weak sales, business failure
GDP per capita
The out put per person
GDP (gross domestic product)
Total value of all final goods and services in one year in a country
Inflation
The increase of general prices
National Debt
The amount owed by the federal government
Personal Income
Salaries, wages, investments and government payments to one person.
Price Index
Compares prices from one year to a previous earlier base year
Productivity
Production out put and the unit of input a worker puts in.
Prosperity
the state of flourishing, wealth, and the standard of living is raised
Recession
a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP
Recovery
employment starts to raise, demand goes up, out put is increased.
Retail sales
monthly economic indicator
Stock
the capital raised by a business or corporation through the issue and subscription of shares.
Unemployment Rate
rate of how many people are unemployed to those who are employed.
