Basic Vocab
the money or wages earned from a job, or money earned by buying and selling goods and services
income
In a _______ economy, production is based on customs and tradition. People often grow their own food, make their own goods, and use barter to trade.
traditional
_________ is the desire to have a good or service and the number of people who are ready to buy it at a certain price.
Demand
What problem occurs because people's wants are unlimited, but the resources available to satisfy their wants are limited?
scarcity
In a ___________ economic system, the government controls some industries and services such as healthcare, electricity, and communications.
socialist
__________ is the amount of a good or service that businesses are willing and able to produce.
Supply
The value of a product that you give up in a tradeoff with another product is known as the _____________.
opportunity cost
If the price of a product increases, what is likely to happen to the supply?
supply will increase
The money left over after the costs of producing a product are subtracted from the income gained by selling that product.
profit
If there is a high demand for a product, what will happen to the price?
price will increase
A(n) _______________ is a system of producing, selling, and buying goods and services.
economy