Basic Economic Concepts
There are only 200 concert tickets, but 5,000 people want them.
scarcity
Amazon, malls, and farmers markets are all examples of this.
market
Your favorite fast-food meal costs more this year than last year.
inflation
Forklifts, ovens, and factory machines are examples of this.
capital
This is a tax placed on imported goods.
tariff
You spend your Saturday working instead of going to a football game with friends.
opportunity cost
When businesses try to beat each other with lower prices or better products.
competition
Economists use this measurement to track the total production of a country.
GDP (Gross Domestic Product)
Education, job experience, and training all improve this.
human capital
The government gives money to farmers to help keep food prices stable.
subsidy
A company starts producing more PS5 controllers after prices increase.
supply
One business controls nearly the entire market.
monopoly
A worker now builds twice as many products per hour because of better equipment.
productivity
The four main factors of production are land, labor, capital, and this.
entrepreneurship
Governments collect these to pay for roads, schools, and emergency services.
A viral TikTok trend causes everyone to suddenly want the new Yeti shot glass.
demand
Someone who starts a business despite financial risk.
entrepreneur
Rising prices reduce this—what your money can buy.
purchasing power
A company buys newer computers so employees can work faster.
investment in capital
This type of economy has the government making most major economic decisions.
command economy
This is the point where buyers stop complaining about high prices and sellers stop complaining about low prices.
equilibrium price
This economic system relies mostly on consumer choice and competition.
market economy
A shrinking GDP over time may signal this larger economic problem.
recession
A doctor’s years of education increase this type of capital.
human capital
Most modern countries—including the United States—use this type of economy.
mixed economy