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Economics
economics of an individual
 is
an example of microeconomics
opportunity cost
 Is
the loss of years of income resulting from
the decision to go to college
taxes on individuals and
businesses
 Is
where the government sector of the
United States receives most of its revenues
Responsible credit card use
 requires
a full understanding of the APR
A.P.R. stands for Annual
Percentage Rate
The greatest source of
revenue for the federal
government is
 Income
taxes
elasticity
 Is
displayed on the horizontal axis of a
demand curve
an increase in the number of
suppliers
 is
most likely to cause the supply of a
product to increase
state
 Is
the level of government that is
responsible for maintaining interstate
highways
tariffs
 Countries
with free trade agreements do
not have these
consumer
 Someone
who buys goods and services
surplus
 Situation
in which quantity supplied is
greater than quantity demanded
collateral
 Property
or valuable item serving as
security for a loan
impulse buying
 Making
purchases based on emotion
rather than on reason
disposable income
 Money
income left after all taxes have
been paid
market demand
 the
total demand of all consumers for a
product or service
examples of substitutes
 coffee
and tea
market supply
 combined
supply schedules of all
businesses that provide the same good or
service
demand elasticity
 extent
to which a change in price causes
a change in quantity demanded
supply elasticity
 measure
of how the quantity supplied of
a good or service changes in response to
changes in price
demand
 the
desire, the willingness, and the ability
to buy a good or service
minimum wage
 lowest
minimum amount that can be paid
to most workers
supply curve
 upward-sloping
line that graphically
shows the quantities supplied at each
possible price
deficit
 situation
where the government spends
more than it collects in revenue
complements
 products
often used with another product
profit
 the
difference between what it costs to
produce something and the price the
buyer pays for it
opportunity costs
 the
benefits given up when scarce
resources are used for one purpose
instead of the next best purpose
boycotts
 to
refuse to buy a certain company's
products or services
capital
 anything
produced in an economy that is
saved to be used to produce other goods
and services
factors of production

the resources people have for producing
goods and services to satisfy their wants
and needs
invest
 to
use money to help a business get
started or grow with the hope the business
will earn a profit
market price
 the
price at which buyers and sellers
agree to trade
sales tax
 tax
levied on a product at the time of sale
property tax
 tax
on land and property
scarcity
 the
problem that resources are always
limited in comparison with the wants
people have
market economy
 when
private individuals own the factors
of production and are free to make their
own choices about production,
distribution, etc
command economy
 when
the government or a central
authority owns or controls the factors of
production and makes the basic
economic decisions
mixed economy
a
combination of the characteristics of
two or more of the three basic economic
systems
traditional economy
 when
the basic economic decisions are
made according to long established ways
of behaving that are unlikely to change
free enterprise economy
 when
individuals in a market economy
are free to undertake economic activities
with little or no control by the government
Partnership
 Is
the most common type of business in
the United States.