Unit 1: What is Economics All About?
Key Terms
Chapter 1: Making Choices
Economics
Consumers
Macroeconomics
Microeconomics
Goods
Services
Producers
Scarcity
Economic resources
Natural resources
Human resources
Capital resources
Entrepreneurship
Society
Trade-off
Opportunity cost
Economists
Minimum wage
Chapter 2: Types of Economics Systems
Economic system
What, how, who
Traditional system
Market system
Competitor
Command system
Free enterprise
Capitalism
Incentive
Means of production
Mixed economy
Socialism
Communism
Class struggle
Five-year plan
Exploit
Quota
Commune
Privatize
Chapter 3: The U.S. Free Enterprise System
private property
public property
profit motive
competition
consumer sovereignty
rule of law
retailer
wholesaler
mixed market economy
gross domestic product (GDP)
business investment
household
circular flow chart
standard of living
Adam Smith
invisible hand
economics goals:
growth, stability, efficiency, security, justice, freedom
Chapter 4: Demand and Supply
demand
demand schedule
Law of Demand
Elasticity of demand
elastic
inelastic
supply
Law of Supply
market price
price-directed market economy
responsive prices
efficiency
demand curve
supply curve
changes in supply
microeconomics
macroeconomics
Chapter 5: Money and Banks
money
barter
medium of exchange
monetary unit
currency
checking account
check
fiat money
commodity money
credit union
FDIC
withdrawal
traveler's check
bank
depositor
interest
commercial bank
savings and loan association
mutual savings bank
cancelled check
deposit
Federal Reserve System
endorsement
reserves
electornic funds transfer (EFT)
automatic teller machine (ATM)
debit card borrow
endorse
Chapter 6: The Value of Money Might Increase or Decrease
value
inflation
purchasing power
deflation
Consumer Price Index
index number
base period
demand-pull
cost-push
monetary policy
inflationary spiral