Economics

STUDY
PLAY
division of labor
separating work equally to be more productive
specialization
providing one kind of product or service (Apple - computers)
sales tax
a fee on things people buy that goes to the government
income tax
a fee on the amount of money a person makes yearly (gets taken out of every paycheck)
resource
something that can be used in a business (car, tools, workers)
competition
rivalry between different stores to keep prices low
scarcity
shortage of goods or services
interest
rate which is charged or paid for the use of money (bank pays you for putting your money in a savings account)
budget
a plan for using your money wisely
comparison shopping
going to different stores to find the best price
employer
someone who hires workers and pays them wages
employee
a worker
opportunity cost
what you are willing to give up in order to buy something else
debit card
when you pay with this card, the money comes directly out of your bank account
credit card
when you pay with this card, the store is paid by the credit card company and then you have to pay back the bill
entrepreneur
a person who starts their own business
productive capacity
the total amount of things that a company can produce
capital good
products that a company needs to be productive (usually very expensive)

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