ap gov final pt.1

financial literacy

free market

Place or situation where people may buy, sell and exchange goods and services when they wish to

stock/share

pieces of a company

capital

money needed to run a company

profit

Total amount of money a company earns after all business costs are paid for

supply

amount of goods and services available

LLCE

land labor capital entrepreneurial

demand

Quantity of goods and services that buyers are willing to purchase at any given time

Scarcity

Resources are limited but wants and needs are unlimited

Devaluation

The more money there is, the less it is worth, and the more it takes to buy something

recession

slowing down the economy

recovery

when the economy begins to bounce back and improve

prosperity

Strong economy, with high employment and production

Trade-Off

When you decide to do one thing instead of another

Opportunity Cost

What you lose when you make a trade-off (the style the real leather shoes give)