Chapter 1 Vocab
What is private property?
Land that a private citizen owns.
What is a currency?
Money
What is interest?
When money grows over time on a loan/savings account.
What is an innovation?
A new idea/invention.
What is a task?
What is a producer?
Someone who creates a good or service.
What does barter mean?
Trade
What is an advertisement?
When companies use commercials, billboards, etc to promote their product.
What is an import?
When a country/state brings a good in.
What is a benefit?
What is a consumer?
Someone who uses a good or service
What is inflation?
When the value of the dollar drops and prices rise.
What is scarcity?
When there is a low supply of a good.
What is an export?
a country/state sends something out.
What does it mean to borrow?
When you take something, use it, and give it back.
What is a market economy?
A type of economy in which private citizens can create and control their own business.
What is profit?
The money you make after taking away expenses.
What is opportunity cost?
When you choose one thing over the other.
What is division of labor?
When work is divided between workers.
What is public property?
Paid for by taxes most of the time, usually government owned.
What is a command economy?
A type of economy where the government creates and controls most businesses.
What is supply and demand?
Supply- How much product you have.
Demand- How badly/many people want the product.
What is an incentive?
Why you want to do something.
What is specialization?
When workers have a specific task they focus on.
What is the difference between a credit and debit card?
Credit card- money you must pay back.
Debit card- your own money.