Economics
Markets, scarcity, inflation and opportunity cost.
Study guides
- Supply and Demand BasicsSupporting explainer
- Opportunity Cost ExplainedSupporting explainer
- Inflation ExplainedSupporting explainer
Key vocabulary
- Consumer price indexA measure of the average change in prices of a basket of goods and services bought by households.
- DemandThe quantity of a good that buyers are willing and able to buy at each price.
- EquilibriumThe point where quantity demanded equals quantity supplied.
- InflationA sustained rise in the general level of prices.
- Interest rateThe price of borrowing money, or the return on saving it, expressed as a percentage.
- Opportunity costThe value of the next best alternative given up when a choice is made.
- ScarcityThe condition that resources are limited while wants are unlimited.
- SupplyThe quantity of a good that sellers are willing and able to sell at each price.
- Trade-offA situation where gaining more of one thing means having less of another.