Economic Terms Definitions provided by the Foundation for Teaching Economics

Markets - A social arrangement that allows buyers and sellers to carry out a voluntary exchange of goods or services - It also refers to the location where goods are traded, sometimes known as a marketplace or street market

Supply The relationship of prices to the quantities of a good or service sellers are willing to offer for sale, at any given point in time

Demand The relationship between prices and the corresponding quantities of goods or services buyers are willing to purchase at any given point in time

Price What people pay when they buy a good or service and what they receive when they sell a good or service Send signals and provide incentives to buyers and sellers When supply or demand changes, market prices adjust, affecting incentives

Profit The difference between total revenue and total cost Revenue = how much you make Cost = how much you spend

Production The creation of value The producing of articles having exchange value

Taxes Compulsory payments by individuals and businesses to government

Top Ten Signs Gas is Expensive by David Letterman May 2 nd 2006 It's so expensive, Britney Spears' baby is driving a Prius It's so expensive, Anna Nicole Smith married the night manager of a Texaco It's so expensive, it's negatively influencing our foreign policy, hurting millions of hardworking Americans and threatening to throw our economy into absolute chaos It's so expensive, Starbucks is selling Gasaccino It's so expensive, you're actually willing to carpool with Regis It's so expensive, Tom Cruise agreed to be a guest for 5 gallons of unleaded It's so expensive, moviegoers flock to "RV" just to see someone driving It's so expensive, Domino's only delivers within walking distance It's so expensive, mobsters are dousing snitches with olive oil It's so expensive, Batman is patrolling the streets on a Schwinn

Gas Jokes “Gas prices, aren't they crazy? It's so expensive that rats are carpooling in from New Jersey.” – David Letterman “There was a sign at the station near by my house that said, 'We take Visa, Mastercard, Discover Card, and American Express.' After I filled up they took my Visa, Master Card, my Discover Card, and my American Express.” – Jay Leno “They said on the news tonight that if gas prices get any higher, we could see something totally unprecedented here in California. People actually walking.” – Jay Leno

Gas Jokes Cont’d “Gas prices continue to rise. At the gas station near my house they have a slot for your credit card and one right next to it for your 401K.” – Jay Len “President Bush spoke with the Amish. He didn't want to, but it was the only group he could find that wasn't upset about the high price of gas.” – Jay Leno “As you know, the government takes 40 percent of what you make. The other 60 percent, of course, taken by the gas stations.” – Jay Leno “The average national price of a gallon of gas hit an all-time record high of $3.15 this week. Meaning that wherever you're going this summer, it might be cheaper to mail your car.” – Amy Poehler