the study of how individuals and nations make choices about ways to use scarce resources to fulfill their needs and wants

all things that can be used—natural resources, labor, buildings, and tools—to make goods or services

the situation of not having enough resources to satisfy all one's wants

a nation's way of producing things its people want and need

an economic system in which the decisions of what, how, and for whom to produce are based on custom or habit

an economic system in which individuals and businesses own all resources and make economic decisions on the basis of price

an economic system in which the major economic decisions are made by the central government

system combining characteristics of more than one type of economy; a market economy that has elements of command and tradition

the alternative you face if you decide to do one thing rather than another

something that is chosen; a choice

the cost of the next-best use of time and money when choosing to do one thing or another

an expense that does not change no matter how much a business produces

an expense that changes depending on how much a business produces

the combination of all fixed and variable costs

the additional or extra opportunity cost associated with each increase of one unit of sales

the money a business receives from selling its goods or services

the additional income received from each increase of one unit of sales

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

someone who buys a good or service

a business that provides goods and services

the amount of a good or service that consumers are willing and able to buy over a range of prices

the amount of goods and services that producers are willing and able to sell at a range of prices

location or arrangement that allows buyers and sellers to get together and buy or sell a certain product

efforts by different businesses to sell the same good or service; the struggle that goes on between buyers and sellers to get the best products at the lowest prices

the price set for a good or service in the marketplace, where demand and supply are perfectly balanced

situation in which quantity supplied is greater than quantity demanded

situation in which quantity demanded is greater than quantity supplied

anything that is produced; goods and services

total market value of all final goods and services produced in a country during a single year

amount produced

risk-taking individual who starts a new business, introduces a new product, or improves a management technique

Gross Domestic Product on a per-person basis; GDP divided by population

the material well-being of an individual, a group, or a nation as measured by how well their needs and wants are satisfied

a model showing how goods, services, and money flow among sectors and markets in the American economy

a category or a part of a whole

the increase in a country's total output of goods and services over time

the degree to which resources are being used efficiently to produce goods and services

when people, businesses, regions, and/or nations concentrate on goods and services that they can produce better than anyone else

the breaking down of a job into separate, smaller tasks to be performed individually

the sum of people's knowledge and skills that can be used to create products

a system in which private citizens own most, if not all, of the means of production and decide how to use them within legislated limits

economic system in which individuals and businesses are allowed to compete for profit with a minimum of government interference

the act of buyers and sellers freely and willingly engaging in market transactions

the money a business receives for its products or services over and above its costs

the driving force that encourages individuals and organizations to improve their material well-bein

efforts by different businesses to sell the same good or service; the struggle that goes on between buyers and sellers to get the best products at the lowest prices

he freedom to own and use our own property as we choose as long as we do not interfere with the rights of others

reward offered to try to persuade people to take certain economic actions

economic system where government should not interfere in the marketplace

a movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers

the process of comparing competing products and prices in order to find the best value

an item that does not have a brand name but is basically similar to a more expensive, well-known product

the promise made by a manufacturer or a seller to repair or replace a product within a certain time period if it is faulty

an unplanned, often emotional, decision to buy

money income left after all taxes on it have been paid

a plan for making and spending money

money spent on goods and services

amount of money left over after subtracting expenses from income; money still owed on a credit card or bank loan

a negative balance

permission to pay later for goods or services obtained today

the payment people or institutions receive when they lend money or allow someone else to use their money

money lent at interest

the recipient of a loan

annual cost of credit expressed as a percentage of the amount borrowed

The _______ is the amount that you deposited initially, money used to gain income.

shares of a company held by an investor

a portion of company earnings paid to shareholders

interest-bearing certificate of agreement between a borrower and a lender

an investment company that sells stock in itself and uses the proceeds to buy stocks and bonds issued by other companies

fee for early withdrawal of funds

The interest is added to your principal when the CD reaches _______.

_______ is the preset time at which your CD is payable.

profit earned through investing