Supply and Demand
What is the law of demand?
When price goes up, quantity demanded goes up.
What are costs you pay every month called?
Expenses.
What is money you earn from working called?
Income.
Having unlimited wants but limited resources
What is credit?
Borrowing money to pay later.
What is equilibrium?
Point where supply equals demand.
What is rent or phone bill called?
Fixed expense.
What is regular money you get from a job called?
Wages or salary.
What is the main reason people cannot have everything they want in economics?
Limited resources.
What is interest?
Cost of borrowing money.
What is demand?
A change in income that causes the curve to shift.
What is food or gas called when it changes each month?
Variable expense.
What is extra money earned from side jobs called?
Additional income.
What is opportunity cost?
The best alternative that you didn't choose
What is debt?
Money you owe.
What happens when the price of a product goes up but people buy less of it?
Quantity demanded goes down.
What do you call expenses that are necessary to live?
Needs.
What is income before taxes taken out called?
Gross income.
What is efficiency?
Using resources in the most productive way.
What is a repayment?
Paying back a loan over time.
What is elasticity?
Responsiveness of quantity to price change.
What do you call expenses you want but don't need?
Wants.
What is income after taxes taken out called?
Net income.
What is equity?
Fair distribution of resources.
What is a late fee?
Penalty for missing payments.