Basic Economic Terms

Front

Scarcity

Back

When resources are limited and the need for a good or service is higher for a society than what is produced.

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Disposable Income

Back

Refers to one’s total income that is left following the payment of all required taxes.

Front

Fixed Income

Back

The cost of income that does not change from month to month. It is a part of someone’s business budget.

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Need

Back

Something that a person must have to survive.

Front

Wants

Back

Goods and services that people desire but do not need them to survive.

Front

Price

Back

The monetary value to a product or services.

Front

Competition

Back

The rivalry that may refer to rivalry among firms or individuals, or race to control resources.