| Term | Definition |
|---|
| Capitalism | economic system in which private citizens own and use the factors of production in order to generate profits |
| Consumer Price Index | statistic that measures overall changes in price or inflation over time |
| Consumer Sovereignty | the concept that the consumer is the ruler of the market |
| Demand | desire, ability, and willingness to buy a product |
| Depression | a state of the economy with large numbers of unemployment, supply shortages, and excess capacity in manufacturing plants |
| Deregulation | relaxation of government regulation on industry |
| Elasticity | a measure of responsiveness that tells us how a dependent variable such as quantity responds to an independent variable such as price |
| Federal Reserve System | privately owned, publicly controlled, central bank of the United States |
| Gross Domestic Product | the dollar amount of all final goods and services produced within a country’s borders in a year |
| Inflation | a rise in the general level of prices |
| Liquidity | ability to converted an asset into cash quickly |
| Marginal Utility | the extra usefulness gained from consuming one more unit of a product |
| Minimum Wage | the lowest legal wage that can be paid to most workers |
| Money | any substance that serves as a medium of exchange, a measure of value, and a store of value |
| Scarcity | the condition that results from limited resources combined with unlimited wants |
| Standard of Living | the quality of life based on the possession of necessities and luxuries that make life easier |
| Supply | the amount of a product that would be offered for sale at all possible prices that could prevail in the market |
| Tariff | a tax on an imported product |
| Trade-Off | alternatives that must be given up when one is chosen over another |
| Unemployed | people available for work who made a specific effort to find a job during the past month and who, during the most recent survey week, worked less than one hour for pay |
Combine with other sets
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