Economic Thinking
This term describes the idea that resources are limited but wants are unlimited.
What is scarcity?
These economic participants earn money and spend it on goods and services.
Who are households?
This law states that when prices go up, consumers buy less.
What is the law of demand?
This measures the total value of goods and services produced in a country.
What is GDP (Gross Domestic Product)?
This U.S. institution controls the money supply.
What is the Federal Reserve (the Fed)?
This is money you earn from a job or other sources.
What is income?
This is the next best thing you give up when making a decision.
What is opportunity cost?
These entities produce goods and services and aim to make a profit
What are businesses?
This law states that when prices go up, producers supply more.
What is the law of supply?
This term describes a general increase in prices over time.
What is inflation?
This type of policy involves controlling interest rates.
What is monetary policy?
This is a plan for how you will spend and save your money.
What is a budget?
This branch of economics focuses on individuals and small-scale decisions.
What is microeconomics?
This part of the economy collects taxes and provides services like roads and schools.
What is the government?
This is the point where supply equals demand.
What is equilibrium?
This happens to money’s purchasing power during inflation.
What is it decreases?
Lower interest rates usually cause this to increase.
What is borrowing and spending?
This is money set aside for future use instead of spending now.
What are savings?
These four categories describe resources used to produce goods and services.
What are land, labor, capital, and entrepreneurship?
This model shows how money moves between households, businesses, and government.
What is the circular flow of the economy?
This occurs when demand is greater than supply, causing prices to rise.
What is a shortage?
This phase of the business cycle includes economic growth and more jobs.
What is expansion?
This type of policy involves government spending and taxes.
What is fiscal policy?
This is the cost of borrowing money, often shown as a percentage.
What is interest?
This idea explains why every decision involves tradeoffs.
What is scarcity forcing choices (or economic tradeoffs)?
This economic participant both collects taxes and provides public services, influencing how money moves through the economy.
What is the government?
This occurs when supply is greater than demand, causing prices to fall.
What is a surplus?
This is a severe and long-lasting economic downturn.
What is a depression?
This economic system combines elements of both command and market systems.
What is a mixed economy?
This score measures your reliability in paying back borrowed money.
What is a credit score?