Economics

• Social Science • Choice about using

resources and spending money

Consumer

• Person who buys goods and services

• Examples: Food, services, clothing

Producer

• One who makes and manufactures goods to sell

Advertisement

• Public Notice• Goods and Services are

for sale• Usually a persuasive

message

Money

• Any material recognized as a medium of exchange

Currency

• Money Issued by the government

Inflation

• Rise in the usual price level for goods and services

Price

• Value of a good or service

Supply

• Quantity of a good or service available for a particular price at a given time

Demand

• Ability and willingness of consumers to buy a good or service at a given price at a certain time.

The Four Factors of Production

Land

• Natural Resources needed to carry on the process of production

Labor

• Mental and physical human labor

• Process of Production

Capital

• Money, Equipment, and buildings needed to turn raw materials and labor into finished products.

Management

• Person or people responsible for the factors of production

Business

• Buying or selling of goods

• Store or factory

Fiscal Year

• Business year• July 1-June 30

Corporation

• Business organization• Owned and operated by

a group of people

Investment

• Put money to use• Purpose is to make a

profit

Stock

• Certificate of investment

• Part ownership in a company

• Number of shares

Recession

• Slowing of business activity

Depression

• Little or no economic growth

Barter

• System of trading one good for another good or service

• No Money would be used.

Taxes

• Money Paid by the people for support of the government

Monopoly

• Exclusive control of manufactured goods or services.

Strike

• Stop work at a company until demands are met

Checking Account

• Demand Deposit• Withdraw using check or check card (debit

card)

Savings Account

• Time Deposit• Deposit money into bank for use in exchange

you interest

Interest

• Money paid for use of capital