| A | B |
|---|
| 4 Types of Money | 1) measure of value, 2) medium of exchange, 3) way of saving, 4) standard of payment in the future |
| trade | barter |
| 3 Types of Economics | 1) traditional, 2) command, 3) market |
| high supply, low demand | the price increases and there is a surplus of goods |
| high demand, low supply | the price of goods will increase and there will be a shortage of goods |
| needs | something everyone has to have to live |
| types of needs | food, shelter, water, clothing |
| wants | luxury items you can live without |
| law of scarcity | a person can't have everything; to get somethin, something else must be given up |
| Gross National Product | the total value of goods and services produced in a nation in a certain year |
| time deposit | service of a commercial bank that earns interest for the investor |
| uses of money | 1) a measure of the value of goods and services, 2) money provides a way of saving, 3) in the future, the need for currency may disappear |
| corporations | 1) a legal person, 2) cannot be sued, 3) may issue common stock but not preferred stock, 4) is another name for a government business |
| equilibrium point | where supply and demand curves meet |
| free enterprise market system | when the 3 major economic questions are answered by supply and demand in the market |
| command economy | the factors of production are controlled by the rulers of the government - Soviet Union |
| capital | the factor of production that describes the machines needed to manufacture goods |
| economics | the study of a) choices, b) scarcity, and c) money |
| 3 Major Economic Questions | Who, What, and How |
