BASIC
ECONOMICS
ECONOMICS
The basic problem of economics.
What is scarcity?
What are land, labor, capital, and entrepreneurship?
The desire, ability, and willingness to purchase a good or service.
Demand
Items such as income taxes, retirement contributions, FICA, etc. which are removed from your check.
What are deductions?
Organizing income into categories in order to pay bills and save money.
What is budgeting?
Economics is the study of this.
What is how people make choices?
The expense of the next best option when one makes a particuar choice.
What is opportunity cost?
A list of quantities that would be offered for sale at all possible prices.
What is a supply schedule?
As income rises, the percentage of tax paid rises as well.
What is a progressive tax?
Money is deposited but I may have limited access to it?
What is a savings account?
A basic problem of economics is the conflict between these two human desires.
What are wants and needs?
The measurement of how useful or satisfying a good or service is.
What is utility?
Direction of the demand curve.
What is sloping downward.
Taxes that are charged at the cash register upon checkout.
What are sales taxes?
Spending more money from your account than there is in the account.
What is an overdraft?
The choosing of one item over others is an example of this.
What are trade-offs?
Some necessities have little value while some non-essential items have a higher value - water v diamonds.
What is the paradox of value?
Items that are purchased along with other items and work together.
What are complements?
Divisions of one's income upon which different percentages of taxes are collected.
What are tax brackets?
The record you keep of all financial transactions in your checking account.
What is a check register?
The use of a grid to list pros and cons of a choice is an example of this process.
What is cost-benefit analysis?
An event in one part of the world can have either a positive or negative impact on other parts of the world.
What is economic interdependence?
When the price of a good rises, the quantity supplied of that good also rises.
What is the law of supply?
Date by which taxes must be filed.
What is April 15?
The rate at which a credit card calculates your interest.