Basic Economics
tools needed for making things (tractors, computers, etc.)
capital goods
the amount a business charges for an item; it includes how much it costs to make and advertise
price
a person who takes a risk to start their own business
entrepreneur
people use money from this account to pay for expenses like bills, food, and clothes
checking account
a plan for using your money wisely to meet your needs and some wants
when different workers do different parts of the job
division of labor
the amount of goods or services that are available for sale
supply
a tax paid on your labor
income tax
the benefit of having a checking account
keeping cash safe from loss
when you go to different stores to find the best price for a good or service
comparison shopping
specialization
the desire people have to buy a product or service
sales tax is the same for every person no matter who you are, True/False
TRUE
the rate which is charged or paid for the use of money (the bank pays you this money for keeping your money in their bank)
interest
most people in the US live this way (in regard to money)
live beyond their means
the total amount of things that a group of workers can produce
productive capacity
a rivalry between two businesses to get more customers
competition
the four sectors of the US economy
households, businesses, banks, and government
debit card takes money out of checking account; credit card is borrowed funds
what you are willing to give up in order to buy something else (wants versus needs)
opportunity cost
an economy in which people make business decisions, not the government. People choose what to make or buy.
free market economy
a shortage of goods or services
scarcity
the services the government provides to citizens using tax money
schools, roads, national security, and public assistance
provide checking and savings accounts, and loans
expenses that never changed and expenses that change monthly
fixed expenses; variable expenses