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 theprice 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.