The Basics
What do economists call the study of how people use limited resources to satisfy unlimited wants?
Economics
The amount of a product that producers are willing to sell at a given price.
Supply
A plan for how you will spend and save your money.
Budget
Getting paid for work you do is known as earning _____.
Income
A place where you live but do not own.
Rent or Renting
The basic economic problem that every society faces.
Scarcity
The amount of a product that consumers are willing to buy at a given price.
Demand
Money set aside for unexpected expenses.
Emergency Fund
A required payment to the government.
Taxes
Monthly costs like electricity, water, and internet.
Utilities
The value of the next best alternative you give up when making a choice.
Opportunity Cost
What happens to demand when prices go down (assuming all else stays the same)?
Demand Increases
Using borrowed money that must be paid back later.
Credit
When prices rise and your money buys less than before.
Inflation
A payment made to protect against financial loss.
Insurance
An example of a good that people buy rather than make themselves.
Consumer Goods
The point where supply and demand meet.
Equillibrium
A score lenders use to judge how risky it is to lend you money.
Credit Score
Losing a job because there are not enough available positions.
Unemployment
A long-term loan used to buy a house.
Mortgage
When resources are used in a way that produces the most value, economists call this
Efficiency
When demand is greater than supply, this market condition occurs.
Shortage
Buying assets with the goal of growing wealth over time.
Investing
What does GDP stand for when discussing economics?
Gross Domestic Product
Expenses that are required for survival, not luxury.
Needs