Basic Concepts
_____ capacity - the total amount of things a group of people can produce.
Productive
What is a good?
something you can touch or hold
What are checks?
a piece of paper that someone uses to tell the bank to give money to someone
The government collects taxes from both ______ and businesses.
households
A consumer is a person who ___ goods or services
purchases
What is a resource?
Something that can be used to increase profit or production.
What is a service?
something that someone does for you
What is similar to a check? A credit card or a debit card?
Debit Card
What is tax?
money that is paid to the goverment
Does product scarcity raise or lower prices?
raises
Definition of Capital Goods.
The tools needed for making things.
Definition of Producer
a person or business that makes or provides goods or services
What is interest?
a percentage of the total amount you have in the bank that is paid into your account
What is sales tax?
A tax on the goods that you buy
Define demand of a product
the amount of a product that consumers are willing and able to buy at a certain price.
What is a resource often used to create a division of labor?
Assembly Line
Definition of consumer
a person who buys goods or services
Name one way the bank uses your money
To provide loans
Define income tax
a tax on your labor
surplus
Definition of Specialization
when companies focus on doing a few things very well.
The US economy has 4 sectors. Name 3 of them.
1. Households
2. Private Businesses
3. Banking
4. Government
The bank actually ____ your money when you don't.
uses
The government uses taxes to pay for public services. Name 3 services the government uses taxes for.
1. Schools
2. Roads
3. National Security
4. Public Assistance
The United States has what kind of economy?
A Market Economy.