Economy Flashcards
Consumer
A person who buys goods
Interest
A Small price you pay to borrow money
Specialization
A very specific good or service
Supply
How much of a product is available
Tariff
A tax on imported goods
Demand
How much people want a certain good or service
Producer
Someone who makes a good and a consumer buys that good
Free Market Economy
A type of economy where people decide what to buy and sell
What is the relationship between supply and demand?
If supply is high and demand is low, prices will be low.
If supply is low and the demand is high, prices will be high
What did Thomas Jefferson and Alexander Hamilton disagree about when it came to the economy?
Thomas Jefferson thought the government should have a small role in the economy. Alexander believed the government needed to have a larger role.
How did George Washington respond to their disagreement?
He put Alexander Hamilton in charge of the Treasury Department
What part of the government collects taxes?
The Treasury Department
What economic rights does the constitution give to people?
To choose their own jobs
