Economics Unit 2

Front 1

consumers

Back 1

someone whose role is to use goods and/or services

Front 2

producer

Back 2

someone whose role is to provide goods and/or services

Front 3

worker

Back 3

someone whose role is to make goods or deliver services

Front 4

business

Back 4

an organization that hires labor, buys resources to use as inputs for production, and owns, rents, and operates equiptment

Front 5

incentive

Back 5

a cost or benefit that motivates a decision

Front 6

market research

Back 6

research into the size, location, and makeup of a product market

Front 7

peer pressure

Back 7

the pressure exerted by a person or group that is intended to change someone's choices or behavior

Front 8

trend

Back 8

general direction of the market, such as a higher demand or supply for a particular product or service

Front 9

rational choice

Back 9

logical decision making based on thoughtful analysis that compares the benefits and costs of an action

Front 10

financial planning

Back 10

process of creating a strategy to pay for necessities and save for future goals

Front 11

budget

Back 11

a financial plan that spells out expenses, income, and projected savings

Front 12

income

Back 12

money earned or received

Front 13

expenses

Back 13

money spent to pay bills and make purchases

Front 14

fixed expenses

Back 14

expenses that are necessary and generally do not change from one time period to the next, such as a fiscal quarter or year

Front 15

flexible expenses

Back 15

non-necessary expenses or luxuries that can be adjusted or eliminated

Front 16

discretionary spending

Back 16

purchases based on a person's wants, not needs

Front 17

assets

Back 17

things of value that a person/business owns

Front 18

short-term planning

Back 18

involves keeping track of and covering all fixed expenses, like food/rent

Front 19

long-term planning

Back 19

looks ahead years into the future to plan for future financial goals

Front 20

utility

Back 20

amount of personal satisfaction gained from the use or consumption of goods and services

Front 21

opportunity cost

Back 21

the benefits of the best alternative option that are given up by a particular decision

Front 22

marginal anaylsis

Back 22

a decision-making tool that weighs additional costs and benefits of going for one more unit of something

Front 23

monetary incentive

Back 23

a benefit that is able to be measured in terms of money

Front 24

nonmonetary incentives

Back 24

benefits that are not measured in terms of money