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| Economics | the study of how to meet unlimited wants and needs of a society with its limited resources. |
| Scarcity | a condition in which more goods and services are desired than are available. |
| Prosperity | phase of the business cycle that has high economic growth and low unemployment. |
| Recession | The phase of the business cycle with high unemployment and reduced consumer spending |
| Competition | forces businesses to operate efficiently. |
| Supply | the amount of goods producers are willing and able to produce and sell |
| Demand | a consumer’s willingness and ability to buy products |
| Elasticity | the degree to which demand for a product is affected by its price |
| Elastic demand | how changes in the price of a product affect demand for that product |
| Inelastic demand | condition in the market where changes in the price of a product have very little affect on the demand for that product |
| Gross Pay | the amount of money an employee makes before any taxes and deductions are taken out |
| Salary | is a fixed, annual amount of income paid to an employee each pay period |
| Wage | is an amount of money paid to an employee based on specific hourly rate |
| Minimum Wage | The smallest hourly rate that an employee may be paid as mandated by federal law. |
| Cost of Living | varies dramatically between regions. It is often lower in rural communities than large urban metropolitan areas. |
| Derived demand | where demand for one good or service occurs as a result of demand for another. |
| Net Pay | The remaining amount of an employee's gross pay after deductions, such as taxes and retirement contributions, are made. |
| Paycheck | shows pay and any of the payroll withholdings |
| Taxes | are required citizen charges by local, state, and federal governments. |
| W-4 Form | a form required by the Internal Revenue Service (IRS) to determine the amount of federal and/or state or local income tax deducted from each paycheck. |
