Unit 4 Vocab: Economics

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

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

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

Something offered to influence our behavior

Things we must have in order to survive.

Resources necessary to produce goods and services

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

When you owe money to other people / companies

The portion of your income that is not spent

The amount of good or service available

The amount of good or service wanted

Where investors can buy and sell shares of ownership in companies

When prices increase and the value of money decreases

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

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

How value is expressed in terms of money:

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

Work performed by a person for someone else

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

Condition that occurs when supply is greater than demand

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

A plan for how the government spends taxpayers’ money

A market economy is also known as

A person who purchases goods and services for personal use.

A worker’s pay

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

Condition that occurs when demand is greater than supply

A command economy is also known as

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

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