| A | B |
|---|
| Economics | Study of people and their choices |
| Supply | as the price goes up this goes down; as the price goes down this goes up |
| Demand | producers are willing to produce more as the price goes up |
| Opportunity cost | the cost in time/resources/money for the second best choice not selected |
| Resources | limited goods and services |
| Inflation | prices going up |
| Rule of inflation | as prices go up, purchasing power goes down |
| Fiat currency | Money not back by gold |
| Wants | Desire |
| Needs | Survival and safety - shelter, food, and clothing |
| Scarcity | limited goods and services |
| The Federal Reserve | Distributes money, regulates banks, and administers monetary policy |
| Time value of money | A dollar today is worth more than a dollar in the future. |
