Unit 4 Vocab: Economics

Total dollar value of all goods and services produced in a country in a single year

A person, company, or country that makes, grows, or supplies goods for sale

Things we must have in order to survive.

A person who purchases goods and services for personal use.

When you owe money to other people / companies

Condition that occurs when supply is greater than demand

A market economy is also known as

Condition that occurs when demand is greater than supply

A worker’s pay

A command economy is also known as

Resources necessary to produce goods and services

An economic model that compares the costs and benefits of a decision

Things we don’t need to survive, but that we would like to have.

The amount of good or service available

The cost of a loan (what you pay back in addition to the amount borrowed)

Tangible (physical) products that we use to satisfy our wants and needs

How value is expressed in terms of money:

When prices increase and the value of money decreases

Work performed by a person for someone else

A plan for how the government spends taxpayers’ money

The choice to sacrifice (give up) one thing in order to get something else.

Something offered to influence our behavior

An economic system in which all economic decisions are made by the government

The value of the thing you sacrifice in a trade off. (What you lose when you choose!)

An evenly-balanced mixed economy is also known as

Where investors can buy and sell shares of ownership in companies

An economic system in which economic decisions are made by the buyers and sellers

The portion of your income that is not spent

The ability to get goods or services by promising to pay for them later

An economic system that has characteristics of both a Command and Market economy

The amount of good or service wanted