Interest The rate (percent) that lenders charge their borrowers for the privilege of borrowing money; Rate which is charged or paid for the use of money **Fee paid on borrowed money You may borrow money for a fee!
Consumer One who buys goods and services Consumer Spending: Percentage of Income (1995)
Consumer Price Index (CPI): an index that measures that average level of prices of goods and services typically consumed by an urban American family
Labor Force The number of people who are either working or not working but are actively seeking work
Per Capita per person; Per unit of population: In that year, Americans earned $15,304 per capita. ONE PERSON
Price Index A series of numbers that show how a set of prices has changed over time OR A number that compares prices in one year with some earlier base year.
Retail Selling small quantities of goods to final consumers; selling in stores
Supply and Demand Supply is how much there is of something Demand is how much people want to buy The relation between the two affects price! We Demand the iphone! High Supply, low demand = LOW prices!
Unemployment The condition of being without a job, but actively pursuing one
Gross Domestic Product GPD-a monetary measure of the production of goods and services within a country GDP = consumption + gross investment + government spending + (exports − imports)
Communism • government owns all land and property, all production and distribution is controlled by the state, in theory everyone is equal and works towards sharing wealth.
Economics The study of the production, distribution, and consumption of goods and services
Employment The condition of working for pay
Socialism Economic system in which the government owns and operates a country’s means of production
Capitalism A economic system in which private businesses run most industries
Bankrupt A state of financial ruin
Commodity Any useful thing that is bought or sold
Capital Items needed to produce other item’s; the money needed to run a business and resources
Inflation Increased prices for goods and services combined with the reduced value of money Burning money because it is worth NOTHING P r i ces M oney
Tradeoff When you have a choice, the TRADEOFF is what you give up in order to get something!