Fundamental Economics
A social science studying the allocation of scarce resources and goods.
Economics
The study of the interaction of people and businesses within a market.
Microeconomics
Large economics and includes large scale economics issues.
Macroeconomics
A tax on an imported good
Tariff
Provides a safe meaning to store earnings.
bank
The decision to produce one good instead of another
Choice
Law that states that the quantity supplied is typically directly proportional to the price, all other things being equal.
Law of Supply
Cross Expenditures + Business Investment + Government Expenditures + Net Exports
GDP
Limits the amount of a good that is allowed in the country
Quota
Provides the same services as a bank except this organization only provides these services to its members.
Credit Union
the loss of potential gain from other alternatives when one alternative is chosen.
Oppurtunity Cost
Law that states that the quantity demanded is typically inversely proportional to its price, all other things being equal.
Law of Demand
Exports-Imports
Net Exports
When the government completely prohibits the import of an item.
Embargo
Gives out small loans in return for a portion of your upcoming paycheck.
Payday Loan Company
The cost of producing one more item.
Marginal Cost
When demand equals supply
Equilibrium Price
Rise in the price level
Inflation
Something that ensures the safety of imported goods and makes sure that these goods comply with local laws.
Standards
Tax system where the tax rate increases as income increases.
Progressive Tax
The benefit associated with that one additional item.
Marginal Benefit
Creates a maximum price at which a good can be sold.
Price ceiling
The supply of all goods and services within a country is.
Aggregate Supply
a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
subsidy
Tax System where the tax rate decreases as income increases.
Regressive Tax