Unit 12 Economics Vocabulary Review

Question 1

Things that can be used to increase profit or production (money, cars, or workers)

Answer 1

Resource

Question 2

The amount of goods or services that are available for sale.

Answer 2

Supply

Question 3

Someone who hires workers and pays wages; like a boss

Answer 3

Employer

Question 4

A shortage or goods or services

Answer 4

Scarcity

Question 5

Providing one kind of product or service. For example: NIKE- shoes

Answer 5

specialization

Question 6

Economy in which people make business decisions, not the government. People choose what to make or buy.

Answer 6

Free Market

Question 7

The total amount of things that a group of workers can produce.

Answer 7

Productive capacity

Question 8

What you are willing to give up in order to buy something else (wants versus needs)

Answer 8

opportunity cost

Question 9

Tools needed for makin things (tractors, computers)

Answer 9

Capital goods

Question 10

Rivalry between two businesses to get more customers.

Answer 10

Competition

Question 11

Money paid to the government

Answer 11

Tax

Question 12

People use money from this account to pay for expenses like bills, food, and clothes

Answer 12

Checking account

Question 13

Going to different stores to find the best price.

Answer 13

Comparison shopping

Question 14

The desire people have to buy a product or service.

Answer 14

Demand

Question 15

A tax paid on your labor

Answer 15

income tax

Question 16

Different workers do different parts of the job

Answer 16

Division of Labor

Question 17

Money that you borrow from the bank; it must be paid back with interest.

Answer 17

Loan

Question 18

Trading one item for another. For example, you trade money for food

Answer 18

Voluntary exchange

Question 19

Rate which is charged or paid for the use of money (the bank pays you this money for keeping your money in their bank)

Answer 19

Interest

Question 20

A plan for using your money wisely to meet your needs and some wants

Answer 20

Budget

Question 21

The amount a business charges for an item; it includes how much it costs to make and advertise.

Answer 21

Price

Question 22

a fee charged on things people buy, this money goes to the government, it is a percentage of what the item costs

Answer 22

sales tax