Supply & Demand
When the price of an item goes up, the demand for it usually goes what direction
What is down
A tax placed on important goods
What is a tariff
The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources
What is scarcity
A financial plan that balances income and expenses over a set period of time
What is a budget
This is the central bank of the United States
What is the federal reserve
This is the point where the quantity demanded by buyers equals the quantity supplied by sellers
What is equilibrium
An individual who takes the risk to start a new business or create a new product
What is an entrepreneur
The amount of an product that producers are willing and able to offer for sell at various prices
What is supply
An expense that remains the same every month, such as rent or a car payment
What is Fixed Expense
In business terms this is what you call the money remaining after all costs of doing business have been paid
What is profit
If demand for an item is extremely high but the supply for the item is low this will generally happen to the price
What is rise / go up
Daily Double
A share of ownership in a company that you can buy on the stock market
What is stock or a share
when the quantity supplied is greater than the quantity demanded this surplus causes the price to do this
What is go down/ lower
A distribution of a portion of a company's earnings to it's shareholders
What is Dividend
This economic indicator measures the total value of all finale goods and services produced within a country in a year
What is GDP/ Gross Domestic Product
This law states that the producers will offer more of a good as it's price goes up
What is the law of supply
The three digit number that tell lenders how likely you are to pay back borrowed money
What is a credit score
When demand increase but supply stays exactly the same this the resulting market condition
What is a Shortage
A low-risk investment where you essentially loan money to a corporation or government in exchange for regular interest payments over time
What is a bond
General increase in the price of goods and services over time
What is inflation
An increase in the price of coke will lead to an increase in demand for Pepsi illustrating this effect
What is the substitution effect
A percentage of monetary value that an individual or company owns , such as a house a car or cash
What is an asset
A measure of how drastically consumers will react to a change in price
What elasticity
This cognitive bias explains why a consumer might continue to use a bad product or service because they've already spent money on it even though that money is gone
What is the sunk cost fallacy
When a person has to spend less and live more frugally the common idiom is to "tighten" this
What is your belt