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Economics vocabulary words

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Term
Definition
financial literacy   when you make wise decisions about how to earn, spend, save, and donate money  
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producer   someone who makes/sells a good or provides a service  
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consumer   someone who buys a good or service  
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income   what people earn when they do work  
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credit   a way to buy something but pay for it later or over time  
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goods   anything you buy that you can hold  
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services   something people do for other people that satisfies their wants and needs  
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interest   money you pay when you borrow money, or earn when you are paid for lending your own money  
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savings   money that you put aside  
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resources   things that are used to make goods and services (natural, capital, and human)  
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demand   a measure of how desirable goods and services are based on availability and price  
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supply   the amount of particular goods or services that are available for use  
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budget   when you make a plan for how you are going to spend your money  
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planned spending   paying money for goods and services you expect to buy  
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unplanned spending   paying money for goods and services you do not expect  
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