| A | B |
|---|
| budget | expenses and income |
| capital | tools, equipment, and factories used in the produciton of goods and services |
| capital good | tool, equipment, or other manufactured good used to produce other goods and services |
| consumer | person who uses goods and services to satisy wants and needs |
| consumer good | good intended for the final use by consumers rather than businesses |
| economics | the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources |
| entrepreneur | risk-taking individual in search of profits |
| factors of production | productive resources that make up the four categories of land, capital, labor and entrepreneurship |
| good | tangible economic prodct that is useful, relatively scarce and used to satisfy wants and needs |
| labor | people with all their abilities and efforts |
| land | natural resources |
| need | basic requirement for survival |
| opportunity cost | cost of the next best alternative use of time, money, or resouces when one choice is made instead of another |
| sales tax | general state tax levied on a product at the time of sale |
| scarcity | fundamental economic problem facing all societies that results from a combination of scarce resources and people's virtual unlimited wants |
| service | work or labor performed for someone |
| trade-offs | alternatives that must be given up when one is chosen rather than another |
| want | way of expressing or communicating a need |
| TINSTAAFL | There is no such thing as a free lunch |
| product | output |
| producers | those who create products |
| gross pay | income without deductions |
| net pay | income with deductions |
| income | revenue received for services or work |
| expenses | bills a person pays to sustain lifestyle |
| W-2 Form | employer form to withhold taxes |
| W-4 Form | employee form to withhold taxes |
| fixed costs | costs which do not change |
| variable costs | costs that change with usage |
| saving | absence of spending that allows for resources to be utilized for other activities or investments |
