ECONOMIC BASICS
This field studies how money is created, used, and exchanged.
What is economics?
In a market economy, prices are determined by this.
What is supply and demand?
Scarcity exists because wants are unlimited but these are limited.
What are resources?
Money earned from working a job.
What is earned income?
When prices rise over time and money loses purchasing power.
What is inflation?
This describes how money, goods, and services move between people, businesses, and government.
What is the economy?
A key feature of a market economy that allows people to make their own economic choices.
What is economic freedom?
What you give up when you make a choice.
What is opportunity cost?
Money earned with little active work.
What is passive income?
Buying stock makes you this in a company.
What is a partial owner?
An economy based on giving without expecting immediate repayment.
What is a gift economy?
A tax placed on imports or exports.
What is a tariff?
Choosing college instead of working full-time gives up this.
What is income or free time?
The type of work common in freelance and flexible jobs.
What is the gig economy?
A benefit of mutual funds that helps reduce risk.
What is diversification?
A system where goods and services are traded without using money.
What is a barter system?
This is one way the government helps regulate the economy.
What is setting minimum wage laws?
A student chooses a part-time job instead of joining a club. This is the opportunity cost.
What is time spent in the club?
When unemployment rises, this usually decreases.
What is tax revenue?
If inflation is higher than your savings interest rate, your money does this.
What does lose purchasing power?
This economic system allows individuals to own businesses and earn profits.
What is capitalism?
Government decisions about collecting and spending money are known as this type of policy.
What is fiscal policy?
This concept explains why using time for one activity limits other choices.
What is scarcity?
Wages are MOST influenced by these two factors.
What are education and experience?
Understanding how decisions affect money over time is called this.
What is financial literacy?