Economic Basics
The study of how people meet their wants and needs.
An organized way for producers and consumers to trade goods and services.
Market
In this type of economic system, the three basic economic questions are answered using traditions and customs.
Traditional economy
These types of countries have a strong economy and a high standard of living.
Developed country
This is a plan that shows income and expenses over a period of time.
A budget
Having a limited quantity of resources to meet unlimited wants.
Scarcity
This is the money a company has left after subtracting the cost of doing business.
Profit
In this economic system, the government answers the three basic economic questions.
Command economy
20%
This is the price paid for borrowing money.
Interest
The cost of your next best option.
Opportunity cost
This is the money a person or business makes by selling goods and services.
Revenue
In this economic system, producers and consumers work together to answer the three basic economic questions.
Market economy
In this type of country, economic activity is low and they have a low standard of living.
Developed country
By doing this, you are using money you already have with the hope of making more money.
Investing
______________ is the desire for a certain good or service and the ______________ is the amount of a good or service that is available for use.
Demand, supply
This is the act of concentrating on producing a limited number of goods and services to increase profit and revenue.
Specialization
In this economic system, there is a mixture of characteristics from command and market economies.
Mixed economy
How do economist measure a country's economy?
Using gross domestic product (GDP)
This is a risky type of investment where you share ownership in a company.
A stock
_______________ are people or businesses who make and sell products and the _____________ are the people of businesses that buy products.
Producers, consumers
Companies profits can be affected by this, which is the struggle among producers for consumers' money.
Competition
What are the three basic economic questions?
What to produce, how to produce it, who gets it once it's been produced?
How do we determine standard of living?
Education, literacy rates, life expectancy, ability to buy goods and services...
This is a certificate issued by a company or the government promising to pay back borrowed money with interest. It is also a safe form of investment.
A bond