Details Title: 100 Terms Description: N/A Total Flash Cards: 100 Created: 05/07/2009 09:00:48		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Economics Flashcards
Cards in this set: Term Scarcity Definition The condition that occurs because people's wants and need are unlimited while resources needed to produce services and goods to meet these needs and wants is limited. Term Basic Economic Questions Definition For whome to produce, what to produce, and how to produce. Term Opporunity cost Definition The value of any alternative that you much give up when you make a choice. Term Production Possibilities Frontier Definition All possible combinations of two goods that can produce in a certain period of time, under the condition of present techonlogy. No umemployed resources and efficient production. Term Allocation Definition The process of choosing which needs will be met and how much of our resources will we use to satisfy them. Term Labor Definition One of the resources used to produce goods and servies - human factor of production. Term Capital Definition Produced goods that can be used as resources one for further production - the means of production includion tools, offices, equipment, also the finacial capita - the moneny to acquire land and labor. Term Natural Resrouces (Land) Definition In econimics any material produced by nature that can be used to produce good or provide services. Term Trade off Definition The choice between alternative uses for a given quantity of a resource. Term Specialization Definition Concentarating the activity of a unit of production resource on a single task or operation. Term Absolute advantage Definition The situation in which a country can produce more of a good than another company can produce with same quatity of resources. Term Comparative advantage Definition The situation in which a coutry can produce a good at a lower opportunity cost than another country. Term Free enterprise Definition An economic system in which individuals own most, if not all, the resources and control their use. Term Command (social) economy Definition An economy in which the major economic questions are determined by the government representing the interest of the entire society. Term Mixed economy Definition An economic system where the basic question are resolved by a mixture of markey forces with government direction. (Free enterprise and socialism) Term Traditional economy Definition An economic system in which the basic economic questions are answered by social custom. Term Markey economy Definition An economy in which the basic ecnomic question are decided by the individuals in the marketplace. Term Circular flow Definition A model of the economy that summarizes the flow of goods and services production from the four sectors - housefolds, businesses, government, and financial institutions. Term Democratic socialism Definition An economic system where the means of production are mostrly in private hands, market driven. Higher taxes to deal with social servies provided by the state. Sometimes called a welfare state. Term State Socialism (Communism) Definition An economic system where means of production are in the hands of government. Economic decisions made by a central authority. All wages set. Term Capitalism Definition An economic system based where means of production are owned by private individuals to produce for profit. Production is determined by market forces. Term Adam Smith Definition Considered the Father of Modern Economics, wrote the "Wealth of Nations," this book was a major influence on our Founding Fathers and their pro free enterprise views coupled with limited government. Term Law of supply Definition States that the quantity of goods supplied will be greater at a higher price than it will at a lower price. The relationship is direct. Term Law of Demand Definition States that the quantity demanded of a good will be greater at lower prices than will be quantity demanded at high prices. This is an inverse relationship. Term Equilibrium price Definition The price at which the questity demanded equals the quantity supplied. Term Surplus Definition The quantity supplied of an item at a given price exceeds the quantity demanded. Term Alfred Marshall Definition An economist whose book "Principles of Economics" had a major impact on the economics profession. Most known for defining the concepts of elsticity of demand. Term Utility Definition The satisfaction from consumption, sense of well-being Term Elasticity Definition Measurement of the degree of the response of a change in quatity to a change in price. Term Competition Definition The rivalry between two or more businesses striving for the same consumer market. Term Profit Definition Net returns after subtracting total costs from total revenue. Term Entreprenuers Definition Individuals who take the risk of prucing a product for a profit. Term Bond Definition A certificate of debt stating the amount of a coroporation has borrowed from a holder and terms of repatment. Term Stock Definition Shares of ownership in a company. Term Mutual Fund Definition Financial organization that pools peopel's money and invests it. Term Broker Definition One who acts as an agent for others in negotiation contracts, purchases of sales in return for a fee or commision. Term Blue Chip Stock Definition A stock that sells at a higher price because of public confidence in its long record of steady earnings. Term Preferred stock Definition The portion of a corporations stock having a priority or preference over the common stock in the distribution of dividend and assets, usually Owned by employees. Term Bear Market Definition An investor whose concern in the stock markey causes her to sell sevurities thinking the price will fall thus cutting losses. Term Bull Market Definition An investor whose concern in the stock market causes him to buy securities anicipating the price to rise thus making profit. Term Dividends Definition The part of a corporation's income paid to its stockholders. Term Investment Definition An increase in the amount of productive capital in the economy. Term Cooperative Definition A business that provides services for its members and is not run for profit. Members pool their resources to gain some benefit not availbale to them as an individual. Term Market Price Definition The prevailing price at which merchandise, securites or commoditites are sold. Term Franchise Definition A contract between by which a firm (corporation) that lets an indiviual (or group) use their name and sell their product, in return for payments being made and requirements being met. Term Sole proprietorship Definition A form of business in which there is one owner. Term Partnership Definition A tyrpe of business organization to which there are two or more owners. Term Corporation Definition An organization of people legally bound together through a charter to conduct some type of business. Term Unemployment Definition The condition of those who are willing and able to work and actively seeking work but who do not currently work. Term Social Security Tax Definition A tax that provides disability and retirement for most working peole. Term SDI Definition State Disability insurance- A partial wage-replacement insurance plan for california workers. It provides affordabe, short-term benefits to eligible workers who suffer a loss of wages when they are unable to work. Term Minimum wage Definition The lowest wage that can be paid for certain kinds of work. Term Unions Definition An organization formed to protect the rights of workers. Term Salaries Definition A fixed amount of money paid to a person on a regular basis. Term Downsizing Definition Restructing a firm and decresing its size to cost less be more productive and become a more efficient operation. Term Interest Rates Definition The price paid for the use on money, usually a percent of total loan. Term Wages Definition A payment for labor or service. Term Collective bargaining Definition The process of having a union negotiate with management to determine the terms of employment for all workers rather than each indiviual. Term Monopoly Definition A form of market orgainzation in which there is only one seller Term Oligopoly Definition A form of market organization in which there are relatively few sellers Term Cartel Definition A formal orpanization of firms in the same industry acting together to make decisions. Term Merger Definition A joining of two companies, when one company buys mroe than one half of the stock in another company thus they act as one. Term John M. Keynes Definition Twentieth centruy economist who changed the way we thought about the economy. He opened doors to government involvement in the economy. Term FDIC Definition Federal Deposit Insurance Corporation - The agency that insures deposits of individuals and businesses for up to $100,000 in the event of bank failure. Term Federal Reserve System Definition The central banking system for the Untied States. Term Monetary policy Definition The changing of the quantity of money in the economy in order to reduce unemployment, keep prices stable and promote economic growth. Term Near Money Definition Assets - Saving accounts that can be easily and quickly turned into money. Term Gresham's law Definition An economic law stating that bad money drives good money out of circulation. Term Savings Definition The unspenct income that households do not spend on goods or services. Also sums of money stored or when prices are reduced. Term Fiat Money Definition Money not redeemable for anything instinsic value, money declared by goverment decree. Term Currency Definition A legal tender that is established by the government and used as a value on the market. Term Stagflation Definition Occurrence of inflation and unemployment at the same time. Term Debt Definition An obligation or liability to pay or render service, something owned for goods or services. Term Real GDP Definition GDP that has been adjusted for price changes. Term GDP Definition Gross Domestic Product is the total dollar value of all goods and services produced by resources located in the Unites States during one year's time. Term Appreciation Definition A rise in value or price. Term Mortgage Definition A pledge to a creditor as a security against a debt. Term Deficit Definition The amount by which speding exceeds revnue for the year. Term Recession Definition The condition in which unemployment is high and GDP falls for two or more consecutive quarters. Term Inflation Definition A rise in the average level of prices. Term Deflation Definition A decline in that average level of prices. Term IRS Definition Internal Revenue Service - The agency in charge of collection taxes for the US government. Term Assets Definition An item of value that can be used to settle debt. Term CPI Definition Consumer Price Index - A number used to calculate change in the average level of prices for a nuber of item typically bought by urban families. Term COLA Definition Cost of Living Adjustment - Automatically adjusts employee wages to match inflation. Term Tax Definition A charge imposed by the government on people or property for public purposes. Term Budget Definition An estimation of expected income, expenses, and savings. It is a tool to help a person meet financial goals. Term Fiscal Policy Definition The changing of federal government spending and taxes in orger to control the level of economic activity. Term NAFTA Definition North American Free Trade Agreement is a trade agreement between Mexico, US, and Canada to promote economic growth and prosperity for all three economies by eliminating barriers to free trade. Term Trade Definition The business of buying and selling, conducting commerce, exchange of goods. Term World Bank Definition An organization established by the UN at the end of WWII. The goal is to reduce poverty by strengthening economies of poor nations through monetary loans and other programs. Term Tariff Definition A tax on imports. Term Quota Definition A limit on the amount of imports or exports. Term Import Definition Goods or services that one coutry buys from another country. Term Barter Definition A direct trade of good or services. Term Exchange rate Definition The rate at which one type of money can be traded for another. Term Export Definition Good or services that one coutry sells to another. Term Protectionism Definition The use of trade barriers to protect a nation's industries against foreign competition. Term International Monetary Fund Definition IMF was established to promote economic cooperation by maintaiining an orderly system of world trade and exchange rates. Term World Trade Organization (WTO) Definition Was esablished in 1995. It is a global comerce agency with the same legal status as the Unites Nations. It is empowered to enforce global commerce rules with the imposition of economic sanctions.