Basic Concepts
What do people use to buy things?
Money
If a store has a sale, what usually happens to demand?
It increases
What do people usually keep their money in for safety?
A bank
What do we call a person who starts their own business?
Entrepreneur
What do people pay to the government to help fund public services?
Taxes
What do we call things people want but don’t really need, like video games or snacks?
Wants
If a store raises prices, what usually happens to demand?
It decreases
What do people earn when they work a job?
Income or wages
What is it called when a government imposes a tax on imports?
Tariff
What’s it called when an economy undergoes two consecutive quarters of decline.
Recession
When people trade one thing for another, what is that called?
Barter or trade
When there’s a long line for a product that’s almost sold out, what does that show?
High demand or a shortage
What do we call the cost of borrowing money?
Interest
What do we call products made in one country and sold in another?
Exports
What is it called when the government spends more than it earns?
Budget deficit
What word describes when there aren’t enough resources to make everything people want?
Scarcity
What do we call the point where supply and demand are equal?
Equilibrium
What is the total value of all goods and services made in a country called?
Gross Domestic Product (GDP)
What’s it called when countries trade with each other?
International trade
What kind of tax takes a bigger share of income from poor people than rich people?
Regressive tax
What do we call the study of how people make choices about money and resources?
Economics
What happens to the price when demand goes up but supply stays the same?
The price increases
What happens when the general prices of goods and services rise over time?
Inflation
What’s it called when one business controls an entire market?
Monopoly
What’s the main difference between fiscal policy and monetary policy?
Fiscal policy is about government spending/taxes; monetary policy is about interest rates and money supply.