Basics
The fundamental economic problem that forces trade-offs.
What is scarcity?
The point where supply and demand meet on a graph.
What is equilibrium?
The organization that controls US monetary policy.
What is the Federal Reserve (the Fed)?
A three-digit number representing creditworthiness.
What is a credit score?
Tracking income and expenses to avoid debt.
What is budgeting?
The next-best alternative given up when making a choice.
What is opportunity cost?
Name at least one factor that could cause a shift in demand.
What is __________?
The two main tools of fiscal policy.
What are taxes and government spending?
The "price" or "cost" of borrowing money.
What is interest?
When an individual relies on trading or purchasing to survive.
What is market dependence?
A model showing how money, goods, and services flow between households and firms.
What is the circular flow model?
When supply rises and demand falls, this happens to the equilibrium price.
What is decreases?
To fight inflation, the Fed does this to interest rates.
What is increases?
Investing in a variety of different ways helps reduce this when investing.
What is risk?
When prices increase without a change in production.
What is inflation?