Basic Economic Concepts
The total number of things that a group of people can produce.
Productive Capacity
Looking for items that are similar to the ones you want to buy.
comparison shop
A person who purchases goods or services.
A consumer
The amount of money a person earns at their work.
income
Food, shelter, clothing
needs
An account people keep their money in to pay bills and make purchases from.
checking account
Something that can be used to increase profit or production. Examples: money, car, tools, person.
Resource
Work that people do to earn money.
labor
A person who makes goods or services.
a producer
The amount of money a person pays for goods and services.
expense
video games, tvs, movies, toys
wants
A piece of paper someone uses to tell a bank to give someone else money from their account.
check
The tools needed for making things.
Capital Goods
A person who hires a worker.
employer
Businesses try to sell goods and services to consumers but consumers have a choice in purchasing the products or services they want or need.
Market Economy
A bill or payment that is the same every month.
fixed expense
Uses goods and services.
households
debit card
To do one thing very well.
Someone who takes a risk to start a business. They often develop new goods and services.
entrepreneur
The total amount of a product that producers are willing to make or sell at a certain price.
supply
A bill or payment that is a different amount each month.
variable expense
Provides goods and services.
private businesses
An account that people put money in to save money make larger purchases or have money put aside for the future.
savings account
Different workers do different parts of a job.
Division of Labor
A tax you pay to the government on your home or your property.
property tax
The amount of a product that consumers are will and able to buy at a certain price.
A plan for how much money will be spent on each item that a person must buy
budget
Provides checking accounts, savings accounts, and loans.
money given to you by the bank that must be paid back plus interest.
loan
Products move on a rolling platform past different workers who are each assigned a different specific job to do.
Money that comes from your paycheck and goes directly to the government.
income tax
Extra money you pay for goods or services that you purchase.
sales tax
What a person gives up by choosing one way of using resources instead of another.
Opportunity Cost
Provides certain goods and services through taxes.
government
Money that is collected by the government to pay for things that the country needs.
taxes