| A | B |
|---|
| Law of Scarcity | Individuals, families, businesses and nations have limited resources with which to meet the unlimited needs and wants of consumers/citizens |
| trade-off | The choice of one item while giving up another |
| opportunity cost | The highest-valued alternative that must be given up when a choice is made |
| Saving | Saving Putting aside money for later use |
| durable goods | Items with lasting value, the purchase of which is considered a form of savings |
| savings rate | The amount of money people save in an economy |
| financial security | Having enough money saved to be able to withstand crises and emergencies |
| Borrowing | Obtaining money, goods, or services in exchange for promise of future payment |
| credit | Borrowing; buying now, paying later |
| interest rate | Percentage of amount borrowed to be added to the amount loaned and paid back |
| inflation | A period in which demand for goods/services is high and prices continue to rise |
