Basic economics
What is economics?
The study of how people use limited resources.
What is demand?
How much people want to buy something.
What is money used for?
Buying goods and services.
What is a budget?
A plan for how you will spend and save money.
What is a tax?
Money people and businesses pay to the government.
What is scarcity?
When there are not enough resources to satisfy everyone's wants.
What is supply?
How much of a product sellers are willing to sell.
What is a bank?
A place that stores money and provides financial services.
What is income?
Money a person receives, usually from work.
What is GDP?
The total value of goods and services produced in a country.
What is a need?
Something necessary for survival, like food or water.
What usually happens to price when demand increases?
The price usually goes up.
What is interest?
Money paid for borrowing or saving money.
What is a credit score?
A number that shows how well someone manages credit.
What is unemployment?
When people who want to work cannot find a job.
What is a want?
Something people would like to have but do not need to survive.
What usually happens to price when supply increases?
The price usually goes down.
What is a loan?
Money borrowed that must be paid back.
What is debt?
Money that you owe
What is a recession?
A period when the economy becomes weaker.
What is opportunity cost?
The next best choice you give up when you make a decision.
What is equilibrium?
The point where supply and demand are equal.
What is inflation?
A general increase in prices over time
Why is saving money important?
It helps pay for future needs and emergencies.
What is fiscal policy?
Government decisions about spending and taxes.