Economics Basics

Front

Scarcity

Back

The limited nature of resources, leading to the need for choices about how to allocate them.

Front

Supply and Demand

Back

The relationship between the quantity of a product available and the desire for that product, which determines its price.

Front

Opportunity Cost

Back

The value of the next best alternative that is forgone when a choice is made.

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Inflation

Back

The rate at which the general level of prices for goods and services rises, reducing purchasing power.

Front

Gross Domestic Product (GDP)

Back

The total value of all goods and services produced within a country over a specific time period.

Front

Monetary Policy

Back

The process by which a central bank, like the Federal Reserve, controls the supply of money to achieve economic stability.

Front

Fiscal Policy

Back

Government decisions on taxation and spending to influence the economy.

Front

Market Economy

Back

An economic system where supply and demand drive production and prices, with minimal government intervention.

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Capital

Back

Resources or assets, such as money or equipment, used to produce goods and services.

Front

Unemployment Rate

Back

The percentage of the labor force that is jobless and actively seeking employment.