You Science Standard 1 Study Notes

These flashcards cover key economic principles and terms that affect personal financial choices, including definitions and concepts relating to households, businesses, government, and the economy.

Households

Individuals or families who earn income and spend money.

Businesses

Entities that produce goods and services, hire workers, and decide what to produce.

Government

The institution that provides public services, collects taxes, and regulates economic activity.

Gross Domestic Product (GDP)

The total value of all goods and services produced in a country over a specific time.

Inflation

The increase in the overall price level of goods and services over time.

Economic Cycle

The fluctuation of the economy between periods of expansion and contraction.

Expansion

A phase when the economy is growing with more jobs and higher income.

Recession

A phase when the economy is slowing down, characterized by rising unemployment.

Depression

A severe and long-lasting recession with high unemployment and major economic decline.

Fiscal Policy

Government decisions about taxes and spending to influence the economy.

Monetary Policy

Actions by the Federal Reserve that control the money supply and interest rates.

Law of Supply and Demand

Economic principle that describes how prices are determined by the relationship between supply and demand.

Scarcity

The limited nature of resources compared to unlimited wants.

Factors of Production

The inputs used to produce goods and services: land, labor, capital, and entrepreneurship.

Macroeconomics

The study of the economy as a whole, focusing on broad variables such as GDP and inflation.

Microeconomics

The study of individual economic decisions made by consumers and businesses.

Opportunity Cost

The value of the next best alternative that is given up when making a decision.

Tradeoffs

The concept that all choices involve giving something up.