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Economics
Vocab for Final
584
Economics
12th Grade
10/11/2012

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Term
ECONOMY
Definition
ACTIVITIES RELATED TO THE PRODUCTION AND DISTRIBUTION OF GOODS AND SERVICES IN A PARTICULAR GEOGRAPHIC REGION
Term
EXCHANGE
Definition
TO GIVE SOMETHINGIN RETURN OF SOMETHING ELSE
Term
VOLUNTARY
Definition
DONE FREELY WITHOUT BEING FORCED OF SOMETHING ELSE
Term
PROPERTY
Definition
A CHARACTERISTIC TRAIT, ATTRIBUTE, OR VIRTUE POSSESSED BY SOMETHING
Term
OUTCOME
Definition
SOMETHING THAT RESULTS FROM SOMETHING ELSE
Term
FEATURES OF GAMES
Definition
1. OUTCOMES
2. PROPERTIES
3. RULES
4. PLAYERS
Term
FEATURES OF THE GAME OF ECONOMICS
Definition
1. A RULE AGAINST STEALING
2. BUYERS AND SELLERS
3. PRICES
Term
GOODS
Definition
OBJECTS THAT SATISF SOMEONES NEEDS OR WANTS
Term
SERVICE
Definition
AN ACT OR A TYPE OF WORK DONE FOR SOMEONE ELSE, USUALLY FOR PAY
Term
BARTER
Definition
TO TRADE GOODS OR SERVICES WITHOUT THE EXCHANGE OF MONEY
Term
PRODUCTION
Definition
THE CREATION OF GOODS AND SERVICES TO SATISFY WANTS AND NEEDS
Term
RESOURCE
Definition
INPUT USED TO PRODUCE GOODS AND SERVICES
Term
ALLOCATION
Definition
SETTING ASIDE RESOURCES FOR A SPECIFIC PURPOSE
Term
CONSUMPTION
Definition
USING A GOOD OR SERVICE
Term
DISTRIBUTION
Definition
TAKING THINGS FROM ONE PLACE TO ANOTHER
Term
GOALS PEOPLE HAVE FORE PLAYING THE GAME OF ECONOMICS
Definition
1. EFFICIENCY
2. GROWTH
3. SECURITY
4. EQUITY
5. FREEDOM
Term
EFFICIENCY
Definition
PRODUCING SOMETHING WITH AS LITTLE WASTE AS POSSIBLE
Term
GROWTH
Definition
AN INCREASE IN SOMETHING
Term
SECURITY
Definition
PROTECTION AGAINST RISK OR DANGER
Term
EQUITY
Definition
FAIRNESS
Term
INDUSTRIOUSNESS
Definition
PERSERVING DETERMINATION TO PERFORM A TASK; DILLIGENCE
Term
FREEDOM
Definition
ABSENCE OF AN OBSTACLE
~MAKING YOUR OWN CHOICES
~ABSENCE OF STRUGGLE AND NEED
Term
SCARCITY
Definition
WHEN DEMAND IS GREATER THAN SUPPLY
Term
SPECIALIZE
Definition
TO PURSUE A SPECIFIC ACTIVITY, OCCUPATION, OR FIELD OF STUDY
Term
FACTORS OF PRODUCTION
Definition
DIFFERENT TYPES OF RESOURCCES NEEDED TO PRODUCE GOODS AND SERVICES
Term
CAPITAL
Definition
RESOURCES CREATED BY HUMANS TO AID IN THE PROCESS OF PRODUCTION
Term
FACTORS OF PRODCTION
Definition
1. LAND-NATURAL RESOURCES
2. LABOR-HUMAN EFFORT
3. CAPITAL-RESOURCES CREATED BY HUMANS
Term
FOUR FUNDAMENTAL QUESTIONS
Definition
1. WHAT IS TO BE PRODUCED?
2. HOW IS PRODUCTION TO BE ORGANIZED?
3. HOW ARE GOODS AND SERVICES TO BE DISTRIBUTED?
4. WHAT IS THE MOST EFFECTIVE ALLOCATION OF RESOURCES?
Term
FACTORS OF LIFE
Definition
1. RESOURCES ARE PRODUCING GOODS AND SERVICES ARE LIMITED
2. THE DEMAND FOR GOODS AND SERVICES IS GREATER THAN THE SUPPLY
3. ECONOMIC GOALS ARE SOMETIMES INCOMPATIBLE
Term
FREE MARKET SYSTEM
Definition
A SYSTEM WHERE ECONOMIC DESICIONS ARE MADE BY THE FREE CHOICES OF PRODUCERS AND CONSUMERS
Term
CAPITALISM
Definition
A SYSTEM OF PRIVATE OWNERSHIP AND FREE EXCHANGE
Term
PRODUCERS...
Definition
~ALLOCATION AND DISTRICUTION DECISIONS
~DECIDE WHAT TO PRODUCE
~PAY FOR INVESTMENTS
~PAY FOR LABOR
Term
CONSUMERS...
Definition
~PURCHASE GOODS AND SERVICES
~DECIDE WHAT TO CONSUME
~PROVIDE FACTORS OF PRODUCTION
Term
CONFLICT
Definition
A SITUATION OF DISAGREEMENT
Term
COERCION
Definition
THE USE O FORCE OF THREATS TO AFFECT SOMEONE ELSES CHOICE
Term
WAYS TO TAKE AWAY YOUR FREEDOM?
Definition
THEFT LIES AND MUGGING
Term
FRAUD
Definition
AN INTENTIONAL MISREPRESENTATION OF REALITY FOR FINANCIAL GAIN
Term
PRIVATE PROPERTY
Definition
INDIVIDUAL OWNERSHIP OF THE FACTORS OF PRODUCTION
Term
PROPERTY RIGHTS
Definition
THE RIGHT TO PRIVATE OWNERSHIP OF LAND, LABOR, AND CAPITAL
Term
MARKET FORCES
Definition
PROPERTIES OF THE FREE MARKET SYSTEM THAT LEAD TO UNINTENDED OUTCOMES
Term
PROFIT MOTIVE
Definition
THE DESIRE TO MAKE MONEY OUT OF PRODUCTION
Term
LOSS
Definition
THE RESLT OF COSTS BEING HIGHER THAN REVENUE
Term
ONNOVATION
Definition
A COST OR BENIFIT THAT MOTIVATES A DECISION OR ACTION
Term
FEATURES OF FREE MARKET SYSTEM
Definition
1. THERE ARE LAWS AGAINST THEFT, FRAUD, AND COERSION
2. CONSUMERS AND PRODUCERS INFLUENCE EACHOTHERS DECISIONS
3. PRODUCERS MAKE DECISIONS ABOUT PRODUCTION AND DISTRIBUTION
4. PEOPLE HAVE CONFLICTING DESIRES
Term
ADVOCATE
Definition
A PERSON WHO SPEAKS OR WRITES IN FAVOR OF SOMEHTING
Term
COMMAND ECONOMY
Definition
A SYSTEM WHERE THE GOVERNMENT RELLS PRODUCERS WHAT AND HOW TO PRODUCE
Term
PLANNED ECONOMY
Definition
AND ECONOMIC SYSTEM RUN BY THE GOVERNMENT
Term
IN A COMMAND ECONOMY TH GOVERNMENT...?
Definition
1. ASSIGNS PRODUCTION GOALS TO PRODUCERS
2. ALLOCATES RESOURCES TO PRODUCERS
3. SETS PRICES FOR CONSUMERS
4. DECIDES WHERE PEOPLE WORK
5. SETS WAGES FOR WORKERS
6. SELLS GOODS AND SERVICES
7. DECIDES WHO GETS WHAT AND HOW MUCH
Term
SOCIALISM
Definition
A STYSTEM AIMED AT EQUALITY OF WEALTH AMOUNG ITS MEMBERS
Term
THEORY
Definition
AN IDEA ABOUT HOM SOMETHING SJOULD BE ORGANIZED
Term
MINIMUM WAGE
Definition
THE LOWEST HOURLY WAGE THAT CAN BE LEGALLY BE PAID TO AN EMPLOYEE
Term
MIXED ECONOMY
Definition
A SYSTEM THAT FOLLOWS BOTH FREE MARKET AND COMMAND PRONCIPLES
Term
FREE MARKET
Definition
SERVES AS THE GOALS OF FREEDOM AND EFFICIENCY VERY WELL
(COMMAND PROVIDES BETTER SECURITY AND EQUITY)
Term
COST BENEFIT ANALYSIS
Definition
A DECISION MAKING PROCESS THAT SEEKS TO MAXIMIZE BENEFITS AND MINIMIZE COST
Term
BENEFIT
Definition
SOMETHING GOOD YOU CAN GET OR SOMETHIN BAD UOU CAN ADVOID
Term
COST
Definition
SMETHING GOOD UOU HAVE TO GICVE UP OR SOMETHING BAD YOU HAVE TO ACCEPT
Term
RATIONAL
Definition
FOLLOWING REASON OR LOGIC
Term
MONESTARY
Definition
ABLE TO BE MEASURED IN TERMS OF MONEY
Term
SUBJECTIVE
Definition
VARYING FROM ONE INDIVIDUAL TO ANOTHER
Term
ECONOMIC INDICATORS
Definition
MEASUREMENTS USED TO JUDGE THE CONDITION OF THE ECONOMY
Term
GROSS DOMESTIC PRODUCT
Definition
THE VALUE OF ALL GOODS AND SERVICES PRODUCED IN A COUNTRY
Term
MATH PROBLEM:
GDP=
Definition
PRIVATE CONSUMPTION + GOVERNMENT SPENDING + INVESTMENT + EXPORTS - IMPORTS
Term
GOVERNMENT SPENDING
Definition
GOODS AND SERVICES (ROADS, WEAPONS, DAS)
Term
INVESTMENT
Definition
BUSINESS INVESTMENTS IN CAPITAL (PRODUCTIVE RESOURCES)
Term
EXPORTS
Definition
PRODUCED IN ONE COUNTRY, SOLD IN ANOTHER
Term
IMPORTS
Definition
GOODS MADE OUTSIDE THE COUNTRY AND PURCHASED WITHING THE COUNTRY
Term
STAGNATING
Definition
NEITHER GROWING NOR SHRINKING
Term
PER CAPITA
Definition
THE AVERAGE AMOUNT PER PERSON
Term
UNEMPLOYMENT RATE
Definition
THE PERCENTAGE OF THE TOTAL NUMBER OF WORKERS WHO ARE OUT OF WORK BUT ARE SEEKING JOBS AND ARE WILLING TO WORK
Term
INFLATION
Definition
RISING PRICES FOR GOODS AND SERVICES
Term
CONSUMER PRICE INDEX
Definition
A MEASURE OF THE AVERAGE CHANGE IN PRICES OR CERTAIN GOODS AND SERVICES TYPICALLY PURCHASED BY CONSUMERS
Term
INFLATION RATE
Definition
INCREASE OF THE AVERAGE LEVEL OF PRICES
Term
INFLATION ADJUSTED PRICE
Definition
PRICE FROM THE PAST INCREASED BY THE INFLATION RATE TO SHOW PRESENT COST
Term
GOVERNMENT BOND
Definition
A FIXED INTEREST FINANCIAL ASSET PURCHASED FROM THE GOVERNMENT TO BE PAID BACK BY A LARGER AMOUNT OF MONEY AFTER A CERTAIN NUMBER OF YEARS U.S. FOVERNMENT BONDS ARE CONSIDERED AMONG THE SAFEST INVESTMENT IN THE WORLD
Term
TECHNOLOGY
Definition
ADVANCEMENTS OR APPLICATIONS THAT IMPROVE RESULTS
Term
METHOD
Definition
A WAY OF DOING THINGS
Term
PRODUCTIVITY
Definition
THE SPEED AT WHICH GOODS AND SERVICES ARE MADE
Term
ASSEMBLY LINE
Definition
A PRODUCTION METHOD THAT INVOLVES LINING UP WORKERS TO ASSEMBLE A PRODUCT IN STAGES USING SIMPL REPETATIVE TASKS
Term
RIPPLE EFFECT
Definition
WHEN ONE CHANGE RESULTS IN A SERIES OF OTHER CHANGES
Term
STANDARDIZE
Definition
TO GET EVERYONE TO DO SOMETHING THE SAME WAY
Term
WAYS TECHNOLOGY EFFECTS THE GAME OF ECONOMICS
Definition
1. SPEEDING UP DISTRIBUTION
2. INCREASING PRODUCTIVITY
3. INCREASING SUPPLY AND DEMAND
4. LOWERING PRICES
Term
MARKET PLACE
Definition
A PLACE WHERE GOODS AND SERVICES ARE SOLD
Term
E-COMMERCE
Definition
ONLINE BUYING AND SELLING
Term
RETAIL
Definition
THE SALE OF GOODS DIRECTLY TO CONSUMER
Term
PROS TO ECOMMERCE
Definition
1. ONLINE BUSINESSES DONT NEED AS MANY EMPLOYEES
2. THERE ARE FEWER STORES TO RUN
3. THE INTERNET IS AN EASY WAY TO ADVERTISE
Term
WAYS THE INTERNET AFFECTS HOW POEPLE MAKE ECONOMIC DECISIONS
Definition
1. ECOMMERCE MAKES BUSINESS MORE EFFICIENT
2. PRODUCERS CAN COMMUNICATE MORE EASILY
3. ONLINE SHOPPING IS MORE CONVINIENT FOR SONSUMERS
4. CONSUMERS GET MORE INFORMATION ABOUT WHAT THEY WANT TO BUY
Term
IMPORTANT ROLES CONSUMERS PLAY...
Definition
1. THEY DECIDE WHAT PRODUCTS AND SERVICES TO USE AND BUY
2. THEY DECIDE HOW MUCH TO BUY
4. THEY DECIDE WHAT PRICE THEY ARE WILLING TO PAY
Term
BUSINESS
Definition
AN PRGANIZATION THAT OWNS, RENTS, AND OPERATES EQUIPMENT, HIRES LABOR, AND BUYRESOURCES TO USE AS INPUTS FOR PRODUCTION
Term
INCENTIVE
Definition
A COST OR BENEFIT THAT MOTIVATES A DECISION OR ACTION
Term
MARKET RESEARCH
Definition
RESEARCH INTO THE SIZE LOCATION AND MAKE UP OF A PRODUCT MARKET
Term
PEER PRESSURE
Definition
THE INFLUENCE OF OTHER PEOPLES BEHAVIOR ON SOMEONES DECISIONS
Term
TREND
Definition
A GENERAL DIRECTION OF THE MARKET, LIKE A HIGHER DEMAND OF SUPPLY FOR A PARTICULAR PRODUCT OR A SERVICE
Term
RATIONAL CHOICE
Definition
LOGICAL DECISION MAKING BASED ON THOUGHTFUL ANALYSIS THAT COMAPRES THE BENEFITS AND COST OF AN ACTION
Term
FINANCIAL PLANNING
Definition
PROCESS OF CREATING A STRATEGY TO PAY FOR NECESSITIES AND SAVE FORE FUTURE GOALS
Term
BUDGET
Definition
A FINANCIAL PLAN THAT SPELLS OUT EXPENSES, INCOME, AND PROJECTED SABINGS
Term
EXPENSES
Definition
MONEY SPENT TO PAY BILLS AND MAKE PURCHASES
Term
INCOME
Definition
MONEY EARNED OR RECIEVED
Term
TOP FIVE BENEFITS OF A PERSONAL BUDGET...
Definition
1. TO KNOW HOW MUCH MONEY YOU ARE MAKING
2. TO KNOW HOW MUCH MONEY YOU ARE SPENDING
3. TO KNOW HOW MUCH MONEY YOU ARE SAVING
4. TO PLAN FO FUTURE EXPENSES
5. TO PLAN FOR FUTURE SAVINGS
Term
FIXED EXPENSES
Definition
EXPENSES THAT ARE NECESSARY AND GENERALLY DO NOT CHANGE FORM ONE TIME PERIOD TO THE NEXTS, SUCH AS A FISCAL QUARTER OF A YEAR
Term
FLEXIBLE EXPENSES
Definition
NON-NECESSARY EXPENSES OR LUXERIES THAT CAN BE ADJUSTED OR ELIMINATED
Term
DISCRETIONARY SPENDING
Definition
PURCHASES BASED ON A PERSONS WANTS NOT NEEDS
Term
ASSETS
Definition
THINGS OF VALUE THAT PERSON OR BUSINESS OWNS
Term
UTILITY
Definition
THE AMOUNT OF PERSONAL SATISFACTION GAINED FROM THE USE OR CONSUMPTION O GOODS AND SERVICES
Term
OPPORTUNITY COST
Definition
THE BENEFITS OF THE BEST ALTERNATIVE OPTION THATARE GIVEN UP BY A PARTICUALR DECISION
Term
MONETARY INCENTIVES
Definition
PSTOCK OPTIONS, ADDITIONAL PAID VACATIONL, PROFIT SHARING
Term
NON-MONETARY INCENTIVES
Definition
BETTER WORK ENVIRONMENT, FLEXIBLE WORK HOURS, VOLUNTEER EXPERIENCE, ADDITIONAL TRANING
Term
MARGINAL ANALYSIS
Definition
A DECISION MAKING TOOL THAT WEIGHT ADDITIONAL COSTS AND BENEFITS OF GOING FOR ONE MORE UNIT OF SOMETHIN
Term
NON-MONETARY FACTORS THAT INFLUENCE CONSUMERS...
Definition
TASTE, CULTURE, BELIEFS, AND VALUES
Term
CULTURE
Definition
A SET OF BELIEFS, VALUES, AND BEHAVIORS SHARED BY MEMBERS OF A CERTAIN GROUP
Term
VALUES
Definition
STANDARDS THAT GUIDE BEHAVIOR
Term
BELIEFS
Definition
IEAS THAT PEOPLE ACCEPT AS TRUE
Term
RISK AVERSION
Definition
THE AMOUNT OF RELUCTANCE A PERSON HAS TO TAKING CHANCES
Term
MEDIA
Definition
FORMS OF COMMUNICATING WITH AN AUDIENCE
Term
MASS MEDIA
Definition
CONSISTS OF LL MEANNS OF MASS COMMUNICATION
Term
NEWS MEDIA
Definition
CONSIST OF NEW INFORMATION SOURCES
Term
PRODUCT PLACEMENT
Definition
PAYING TO DISPLAY A PRODUCT IN A MOVIE OR TV SHOW
Term
ADVERTISING
Definition
THE PROMOTION OF GOODS ND SERVICES COMPANIES AND IDEAS BY AND IDENTIFIED SPONSOR
Term
CONSUMER BEHAVIOR
Definition
HOW CONSUMERS CHOOSE TO BUY GOODS AND SERVICES
Term
BRANDING
Definition
MAKING THE PUBLIC AARE OF A SPECIFIC BRAND OF A PRODUCT AND ASSOCIATING IT WITH QUALITY AND POPULARITY
Term
MATH PROBLEM:
PROFIT
Definition
TOTAL REVENUE - TOTAL COSTS
Term
REVENUE
Definition
THE TOTAL AMOUNT OF MENY BROUGHT IN BY SALES
Term
PROFIT MOTIVE
Definition
THE DESIRE TO MAKE MONEY OUT OF PRODUCTION
Term
LOSS
Definition
THE RESULT OFCOSTS BEING HIGHER THAN REVENUE
Term
PROFIT MOTIVE DRIVES BUSINESS TO DO TWO THINGS...
Definition
1. REDUCE COSTS WHENEVER POSSIBLE
2. INCREASE SALES WHENEVER POSSIBLE
Term
OUTPUT
Definition
THE AMOUNT AND TYPE OF GOODS AND SERVICES PRODUCED
Term
INPUT
Definition
RESOURCES OR FACTORS OF PRODUCTION USED T MAKE GOODS AND SERVICES
Term
CAPITAL
Definition
RESOURCES CREATED BY HUMANS TO AID IN THE PROCESS OF PRODUCTION
Term
PRODUCTION POSSIBILITIES FRONTIER
Definition
A GRAPHICAL DESCRIPTION THAT SHOWS TH MAXIMUM AMOUNTS OF TWO OR MORE GOODS A PERSON OR GROUP OF PEOPLE CAN PRODUCE FIVEN THE INPUTS AVAILABLE
Term
MARKET RESEARCH
Definition
RESEARCH INTO THE SIZE, LOCATION, AND MAKEUP OF A PRODUCT MARKET
Term
MARKET STRUCTURE
Definition
THE ORGAIZATION AND NUMBER OF PRODUCERS PROVIDING A GIVEN GOOD OR SERVICE
Term
PURE COMPETITION
Definition
A MARKET STRUCTURE CHARACTERIZED BY A LARGE NUMBER OF SMALL BUSINESS IDENTICAL PRODUCTS SOLD BY ALL BUSINESS FREEDOM OF ENTRY INTO AND EXIT OUT OF INDUSTRY AND PERFECT KNOWLEDGE OF PRICES AND TECHNOLOGY
Term
PURE COMPETITION HAS FOUR MAIN CHARACTERISTICS...
Definition
1. A LARGE NUMBER OR SMALL BUSINESS
2. IDENTICAL OR EASLY SUBSTITUTED PRODUCTS
3. FREEDOM OF ENTRY INTO AND EXIT OUT OF THE INDUSTRY
4. PERFECT KNOWLEDGE OF PRICES AND TECHNOLOGY
Term
MONOPOLY
Definition
A MARKET STRUCTURE IN CHICH ONE SELLER HAS A GOOD WITH NO CLOSE SUBSTITUTES
Term
MONOPOLY HAS FOUR MAIN CHARACTERISTICS...
Definition
1. ONLY ONE PRODUCER
2. ONE UNIQUE PRODUCT WITH NO CLOSE SUBSTITUES
3. PRODUCER CONTROLS PRICE
4. BLOCKED ENTRY TO COMPETITORS
Term
MONOPOLISTIC COMPETITION
Definition
A MARKET STRUCTURE CHARACTERIZED BY MANY PRODUCERS OF A PRODUCT THAT CAN BE SLIGHTLY DFFERENTIATED, ALLOWING A SMALL AMOUNT OF PRICE-SETTING ABILITY
Term
HETEROGENOUS
Definition
WHEN ITEMS OR ENTITIES IN A GROUP ARE DIFFERENT; OPPOSITE OF HOMOGENOUS
Term
OLIGOPOLY
Definition
A MARKET STRUCTURE CHARACTERIZED BY A FEW SELLERS WITH A HIGH AMOUNT OF MARKET CONCENTRATION
Term
OLIGOPOLY HAS FOUR MAIN CHARACTERISTICS...
Definition
1. AN UNDUSTRY DOMINATED BY A SMALL NUMBER OF LARGE BUSINESS
2. BUSSINESS SELL EITHER IDENTICAL OR SLIGHTLY DIFFERENTIATED PRODUCTS
3. BUSINESS GIVE INCENTIVES INSTEAD OF CHANGING PRICES
4. SIGNIFICANT BARRIERS EXIST TO ENTER INDUSTRY
Term
ENTREPENUER
Definition
AN INDIVIDUAL WHO BEGINS MANAGER AND BEARS THE RISKS OF A BUSINESS
Term
ENTREPRENUERSHIP
Definition
THE PRACTICE OF STARTING NW BUSINESS IN RESPONSE TO IDENTIFIED OPPORTUNITIES
Term
INNOVATION
Definition
FINDING NEW AN BETTER WAYS OF DOING THINGS
Term
AD RATE
Definition
THE AMOUNT OF MONEY CHARGED FOR A PARTICULAR AMOUNT OF ADVERTISING SPACE
Term
MEDIUM
Definition
A METHOD OF TRANSMITTING INFORMATION
Term
CIRCULATION
Definition
THE NUMBER OF NEWSPAPERS OR MAGEZINES PRINTED AND DISTRIBUTED
Term
RATINGS SYSTEMS
Definition
A METHOD OF SAMPLING VIEWERS OR LISTENERS TO STIMATE THE AUDIENCE SIZE FOR A PARTICULAR SHOW
Term
MEDIA CONGLOMERATES
Definition
COMPANIES THAT OWN A LARGE NUMBER OF MEDIA SOURCES IN VARIOUS FORMATS
Term
CENTRALIZATION OF OWNERSHIP
Definition
WHEN A FEW LARGE COMPANIES OWN MOST BUSSINESS WITHIN AN INDUSTRY
Term
BUSINESS MODEL
Definition
THE WAY A COMPANY OPERATES IS BUSINESS
Term
BUSINESS PLAN
Definition
A DESCRIPTION OF A COMPANY'S INTENDED BUSINESS MODEL
Term
WHAT DOES A BUSINESS MODEL DO...?
Definition
1. IDENTIFIES POTENTIAL CUSTOMERS
2.IDENTIFIES GOODS AND SERVICES TO BE OFFERED
3. DESCRIBES THE ORGANIZATION OF THE BUSINESS
4. DESCRIBES HOW THE BUSINESS FUNCTIONS
5. EXPLAINS HOW THE BUSINESS GENERATES REVENUES AND PROFITS
Term
RETAILER
Definition
SOMEONE WHO SELLS GOODS DIRECTLY TO SUSTOMERS
Term
"BAIT"
Definition
INEXPENSIVE BASIC PRODUCT
Term
"HOOK"
Definition
THE NEED FOR EXTRA EQUIPMENT OR SUPPLIES THAT PEOPLE HAVE TO BUY IN ORDER FOR THE PRODUCT TO KEEP WORKING
Term
ADVANTAGES OF THE BRICKS AND CLICKS BUSINESS MODEL
Definition
1. KEEPS CUSTOMER LOYALTY AND TRUST WITH BOTH PHYSICAL AND ONLINE STORES
2. OFFERS CONVENIENT AND EFFICIENT ONLINE PURCHASES
3. ALLOWS QUICKER DELEVERIES THROUGH LOCAL STORES
4. EXPOSES COMPANY BRAND NAME WITH PHYSICAL STORES
Term
CORPORATE CULTURE
Definition
A COMPANY'S VALUES, BELIEFS, BUSINESS PRINCIPLES, TRADITIONS, WAYS OF OPERATING, AND INTERNAL WORK ENVIRONMENT
Term
SOLE PROPRIETORSHIP
Definition
A BUSINESS OWNED AND MANAGED BY A SINGLE INDIVIDUAL
Term
UNLIMITED LIABILITY
Definition
THE OWNER'S PERSONAL RESPONSIBILITY FOR ANY DEBTS OR DAMAGES INCURRED BY THE OPERATION OF A BUSINESS
Term
PARTNERSHIP
Definition
A BUSINESS OWNED AND OPERATED BY TWO OR MORE PEOPLE
Term
GENERAL PARTNERSHIP
Definition
A BUSINESS WHERE EACH PARTNER IS FULLY RESPONSIBLE AND HAS UNLIMITED LIABILITY FOR THE DEBTS OF THE BUSINESS
Term
LIMITED PARTNERSHIP
Definition
A BUSINESS WHERE EACH PARTNERS LIABILITY IS LIMITED ONLY HIS OR HER INVESTMENT IN THE PARTNERSHIP
Term
LIMITED LIABILITY
Definition
LIABILITY THAT IS LIMITED TO A PARTNERS INVESTMENTS
Term
CORPORATIONS
Definition
A BUSINESS OWNED BY STOCKHOLDERS THAT IS LEGAL ENTITY WITH RIGHTS TO BUY, SELL, AND MAKE CONTRACTS
Term
STOCKHOLDER
Definition
A PERSON WHO OWNS A SHARE OF STOCK IN A CORPORATION ALSO KNOWN AS A SHAREHOLDER
Term
SHARE
Definition
ONE UNIT OF OWNERSHIP IN A CORPORATION
Term
STOCK
Definition
A CERTIFICATE SHOWING A SHARE OF OWNERSHIP IN A CORPORATION
Term
BOARD OF DIRECTORS
Definition
A GROUP OF PEOPLE ELECTED BY THE STOCK HOLDERS TO RUN THE CORPORATION
Term
DIVIDENDS
Definition
A SHARE OF COMPANYS PROFIT THAT MANY PAYS TO INVESTORS
Term
PRIVATE CORPORATION
Definition
A CORPORATION WHOSE SHARES ARE NOT PUBLICLY TRADED ON ANY EXCHANGE
Term
PUBLIC CORPORATION
Definition
A CORPORATION THAT TRADES SHARES OF ITS STOCK ON A PUBLIC STOCK EXCHANGE
Term
NONPROFIT CORPORATION
Definition
A CORPORATION ORGANIZED TO BENEFIT ITS MEMBERS OR A SPECIAL CAUSE, NOT TO MAKE A PROFIT
Term
SUPPLY
Definition
THE QUANTITY OF A GOOD OR SERVICE THAT PRODUCERS ARE WILLING AND ABLE TO SELL AT VARIOUS PRICES DURING A SPECIFIC TIME PERIOD
Term
DEMAND
Definition
THE DIFFERENT QUANTITIES OF A GOOD OR SERVICE THAT BUYERS ARE WILLING AND ABLE TO PURCHASE AT VARIOUS PRICES DURING A SPECIFIC TIME PERIOD
Term
QUANTITY SUPPLIED
Definition
THE AMOUNT OF SOMETHING THAT SELLERS ARE WILLING AND ABLE TO SELL AT A CERTAIN PRICE
Term
SUPPLY SCHEDULE
Definition
A TABLE SHOWING THE RELATIONSHIP BETWEEN PRICES AND QUANTITIES SUPPLIED
Term
SUPPLY CURVE
Definition
THE GRAPH OF A SUPPLY SCHEDULE
Term
DEMAND SCHEDULE
Definition
A TABLE SHOWING THE RELATIONSHIP BETWEEN PRICES AND QUANTITIES DEMANDED
Term
EQUILLIBRIUM PRICE
Definition
THE PRICE AT WHICH QUANTITY SUPPLIED AND DEMANDED IS EQUAL
Term
SUPPLY AND DEMAND CURVE
Definition
A GRAPH SHOWING THE INTERSECTION OF THE SUPPLY CURVE AND THE DEMAND CURVE
Term
PRODUCTION
Definition
THE CREATION OF GOODS AND SERVICES TO SATISFY WANTS AND NEEDS
Term
OPTIMAL
Definition
MOST FAVORABLE OR DESIRABLE
Term
WEALTH EFFECT
Definition
THE TENDENCY FOR CONSUMERS TO BUY MORE GOODS AS THEY GET MORE MONEY
Term
DECREASING MARGINAL UTILITY
Definition
THE DECREASE IN THE AMOUNT OF SATISFACTION ADDED AS EACH NEW UNIT IS CONSUMED
Term
BUDGET CONSTRAINTS
Definition
LIMITATIONS ON A PERSONS ABILITY TO SPEND MONEY
Term
NORMAL GOODS
Definition
GOODS THAT PEOPLE BY MORE OF AS THEIR WEALTH INCREASES
Term
INFERIOR GOODS
Definition
GOODS THAT PEOPLE BUY LESS OF AS THEIR WEALTH INCREASES
Term
SUBSTITUTE
Definition
SWITCHING FROM ONE GOOD TO A SIMILAR GOOD, USUALLY ONE THAT IS LESS EXPENSIVE
Term
FUNGABILITY
Definition
WHEN ALL UNITS OF A GOOD ARE THE SAME AS EACH OTHER (GAS)
Term
ELASTICITY
Definition
THE FLEXIBILITY OF A CONSUMERS DEMAND FOR A GOOD OR SERVICE
Term
INELASTIC
Definition
LOW LEVEL OF FLEXIBILITY IN DEMAND
Term
ELASTIC DEMAND
Definition
WHEN CONSUMER DEMAND RISES AND FALLS WITH PRICE
Term
INDIVIDUAL GOOD
Definition
SOMETHING THAT AN INDIVIDUAL CAN ENJOY TO THE EXCLUSION OF EVERYONE ELSE
Term
PUBLIC GOOD
Definition
A NON-EXCLUDABLE, NON-RIVAL GOOD
Term
NON-EXCLUDABLE
Definition
SOMETHING PEOPLE CANT KEEP FROM USING
Term
FREE RIDER
Definition
A NON-PAYING USER OF A GOOD
Term
NON-RIVAL
Definition
WHEN SOMEONE ELSES USE DOESN'T DIMINISH THE USABILITY OF A GOOD
Term
MARKET FAILURE
Definition
THE INABILITY OF A FREE MARKET TO PROVIDE A GOOD THAT'S DEMANDED BY CONSUMERS
Term
CONSUMER SOVERNEIGHTY
Definition
THE IDEA THAT A CONSUMER DEMAND DETERMINES WHAT GETS SUPPLIED
Term
COMMODITY
Definition
SOMETHING USEFUL THAT CAN BE BOUGHT AND SOLD
Term
WAGE
Definition
AMOUNT RECEIVED BY WORKERS FOR THEIR LABOR
Term
LABOR MARKET
Definition
AREA OF THE ECONOMY IN WHICH JOBS ARE OFFERED AN ACCEPTED
Term
LUCRATIVE
Definition
PRODUCING A SIZABLE PROFIT
Term
RESERVE WAGE
Definition
THE LOWEST AMOUNT A WORKER WILL ACCEPT FOR A JOB
Term
WORKFORCE
Definition
CONECTIVE TERM FOR THE PEOPLE WHO WORK AT JOBS
Term
LABOR POOL
Definition
WORKERS AVAILABLE FOR JOBS
Term
IMMIGRATION
Definition
THE MOVEMENT OF PEOPLE FROM ONE COUNTRY TO ANOTHER
Term
WHAT AFFECTS THE LEVEL OF WAGES FOR A PARTICULAR JOB?
Definition
1. AMOUNT OF INPUT
2. DEMAND FOR LABOR
3. EDUCATION LEVEL
4. IMMMIGRATION
5. SUPPLY OF WORKERS
6. RESTRICTION ON PRODUCERS
Term
GLOBALIZATION
Definition
INCREASING INTER CONNECTEDNESS OF PEOPLE AND NATIONS THROUGH COMMUNICATION, TRADE AND THE EXCHANGE OF IDEAS
Term
DOMESTIC
Definition
RELATED TO OR LOCATED ON ONE'S HOME COUNTRY
Term
TRADE BARRIERS
Definition
POLICIES THAT REDUCE OR ELIMINATE INTERNATIONAL TRADE
Term
PROTECTIONEST
Definition
POLICIES DESIGNED TO KEEP A COUNTRY'S ECONOMY, BUSINESS', AND WORKERS SAFE FROM COMPETITION
Term
TARIFF
Definition
A TAX ON INTERNATIONAL TRADE
Term
QUOTA SYSTEM
Definition
A SYSTEM THAT LIMITS THE IMPORT AND/OR EXPORT OF CERTAIN GOODS
Term
SUBSIDY
Definition
A GOVERNMENT PAYMENT TO SOMEONE
Term
OUTSOURCE
Definition
TO SEND A JOB FROM ONE PLACE TO ANOTHER, USUALLY ANOTHER COUNTRY
Term
WHAT THREE THINGS INCREASE AS A RESULT OF GLOBALIZATION?
Definition
1. COMPETITION AMOUNG WORKERS
2. OUT SOURCING JOBS TO POORER NATIONS
3. FREE TRADE AMOUNG NATIONS
Term
LABOR UNION
Definition
WORKERS IN A PARTICULAR JOB OR WORKPLACE ORGANIZED INTO A GROUP THAT PUSHES FOR HIGHER WAGES AND BETTER WORKING CONDITIONS
Term
UNION DUES
Definition
MONEY PAID BY WORKERS TO SUPPORT THE OPERATION OF A UNION
Term
COLLECTIVE BARGAINING
Definition
PROCESS IN WHICH A GROUP OF EMPLOYEES NEGOTIATE A CONTRACT WITH AN EMPLOYEE
Term
INDIVIDUAL BARGAINING
Definition
A PROCESS WHERE INDIVIDUAL WORKERS NEGOTIATE WITH THEIR EMPLOYER DIRECTLY
Term
BARGAINING POWER
Definition
THE LEVEL OF STRENGTH BY ONE SIDE IN A NEGOTIATION
Term
INDUSTRIAL ACTION
Definition
STEPS TAKEN BY WORKERS TO AFFECT PRODUCTION IN ORDER TO INFLUENCE EMPLOYERS
Term
STRIKE
Definition
WHEN WORKERS STOP WORKING
Term
SLOW DOWN
Definition
AN INTENTIONAL REDUCTION IN PRODUCTIVITY BY WORKERS
Term
STRIKE BREAKERS
Definition
REPLACEMENT WORKERS INTENDED TO END A STRIKE
Term
LOCKOUT
Definition
WHEN AN EMPLOYER PREVENTS WORKERS FROM ENTERING THE WORKPLACE
Term
WHEN WAS THE NATIONAL LABOR REACTIONS ACT PASSED?
Definition
1935
Term
LOBBYING
Definition
TRYING TO PERSUADE THE GOVERNMENT TO PASS FAVORABLE LAWS
Term
UNEMPLOYMENT INSURANCE
Definition
A SYSTEM OF INSURANCE THAT PAYS UNEMPLOYED WORKERS FOR A PERIOD OF TIME AS THEY LOOK FOR ANOTHER JOB
Term
MEDIAN INCOME
Definition
THE INCOME THAT HALF THE PEOPLE EARN MORE THAN AND HALF THE PEOPLE EARN LESS THAT
Term
HOUSING MARKET
Definition
WHERE HOUSES ND APARTMENTS ARE OFFERED AND PURCHASED OR RENTED
Term
OWNER-OCCUPIED
Definition
WHEN THE PERSON WHO LIVES IN THE HOUSING UNIT ALSO OWNS IT
Term
RENTER-OCCUPIED
Definition
WHEN THE PERSON WHO LIVES IN THE HOUSING UNIT PAYS THE OWNER TO LIVE THERE
Term
LANDLORD
Definition
OWNER OF A PROPERTY WHO RENTS IT TO THOSE WHO LIVE THERE
Term
COOPERATIVE
Definition
A HOUSING TYPE WHERE THE OWNERS ARE THE SHARE HOLDERS IN A CORPORATION THAT OWNS THE BUILDING
Term
SINGLE FAMILY HOME
Definition
A HOUSE NOT ATTATCHED TO ANY OTHER HOUSES, INTENDED TO SHELTER ON HOUSEHOLD
Term
APARTMENT BUILDING
Definition
RENTER-OCCUPIED UNIT IN A BUILDING OWNED BY A LANDLORD
Term
TOWN HOUSE
Definition
A HOUSE ATTATCHED TO OTHER HOUSES, GENERALLY IN A LONG ROW
Term
CONDOMINIUM
Definition
A STRUCTURE OF TWO OR MORE UNITS WHICH ARE INDIVIDUALLY OWNED, AND COMMON PARTS OF THE PROPERTY ARE OWNED JOINTLY BY THE UNIT OWNERS
Term
INVESTMENT
Definition
PURCHASE OF AN ASSET WITH THE INTENTION IF MAKING A PROFIT
Term
DEMOGRAPHICS
Definition
THE DISTRIBUTION OF DIFFERENT GROUPS IN A POPULATION BASED ON SUCH FACTORS AS AGE, INCOME, PROFFESIONS...
Term
MORTGAGE
Definition
A LOAN GIVEN TO PAY FOR A HOUSE OF OTHER TYPE OF REAL ESTATE
Term
MORTGAGE INTEREST RATE
Definition
THE AMOUNT OF INTEREST CHARGED ON A LOAN USED TO BUY A HOUSE
Term
PRICED OUT
Definition
WHEN A PRICE BECOMES TOO HIGH TO BE AFFORDABLE
Term
MEDIAN HOME PRICE/MIDPOINT PRICE LEVEL
Definition
HALF THE HOMES COST MORE AND HALF THE HOMES COST LESS
Term
SUBURBS
Definition
PRIMARILY RESIDENTIAL AREAS OUTSIDE OF BUT NEAR A MAJOR CITY
Term
EXURBS
Definition
RURAL RESIDENTIAL COMMUNITIES FARTHER FROM THE CITY THAN SUBURBS
Term
ZONING LAWS
Definition
REGULATIONS DEFINING HOW LAND IN CERTAIN AREAS MAY BE UTILIZED
Term
URBAN RENEWAL
Definition
THE REVITALIZATION OF AN OLD AND UNDESIRABLE AREA IF A CITY
Term
STANDARD OF LIVING
Definition
THE AMOUNT OF GOODS AND SERVICES AVAILABLE TO THE AVERAGE PERSON
Term
MARKET SHARE
Definition
THE PERCENTAGE OF OVERALL SALES IN A PARTICULAR AREA THAT IS MADE BY A SINGLE COMPANY
Term
SPECIALIZATION
Definition
FOCUS ON A SPECIFIC NARROWLY DEFINED TASK
Term
TRADE
Definition
THE EXCHANGE OF GOODS AND SERVICES FOR OTHER COMMODITIES SUCH AS MONEY
Term
DIVERSITY
Definition
CREATE DIFFERENCES
Term
PROTECTIONIST
Definition
POLICIES DESIGNED TO KEEP A COUNTRY'S ECONOMY, BUSINESS' AND WORKERS SAFE FROM COMPETITION
Term
TARIFF
Definition
A TAX ON INTERNATIONAL TRADE
Term
SUBSIDY
Definition
A GOVERNMENT PAYMENT TO SOMEONE
Term
BUSINESS CYCLE
Definition
REGULAR CHANGES IN ECONOMIC ACTIVITY
Term
DEMAND-PULL INFLATION
Definition
A RISE IN PRICES DRIVEN BY RISING CONSUMER DEMAND
Term
COST PUSH INFLATION
Definition
A RISE IN PRICES DRIVEN BY RISING PRODUCTION COSTS
Term
BOOM
Definition
A PERIOD OF HIGH EMPLOYMENT AND RISING DEMAND
Term
RECESSION
Definition
A GENERAL SLOWDOWN IN ECONOMIC ACTIVITY
Term
DEPRESSION
Definition
A PERIOD OF DECREASING ECONOMIC ACTIVITY, FALLING PRICES, AND HIGH UNEMPLOYMENT
Term
EXOGENOUS
Definition
SOMETHING EXTERNAL TO A SYSTEM
Term
MONETARY POLICY
Definition
THE REGULATION OF THE MONEY SUPPLY THROUGH VARIOUS TOOLS OF GOVERNMENT ACTION
Term
FISCAL POLICY
Definition
THE TAXATION AND SPENDING PRACTICES OF THE GOVERNMENT
Term
BUDGET DEFICIT
Definition
WHEN INCOME IS LESS THAN EXPENDITURES
Term
BUDGET SURPLUS
Definition
WHEN EXPENDITURES ARE LESS THAN INCOME
Term
RETAIL
Definition
THE SALE OF GOODS AND SERVICES IN A SMALL QUANTITIES DIRECTLY TO CONSUMERS
Term
WHOLESALE
Definition
SALES TO OTHER COMPANIES RATHER THAN TO CONSUMERS
Term
ECONOMIES OF SCALE
Definition
INCREASED EFFICIENCY AND OFTEN REDUCED COSTS RESULTING FROM AN INCREASE IN THE SIZE OF OPERATION OR AMOUNT OF PRODUCTION
Term
OVERHEAD
Definition
COSTS OF THE PHYSICAL ASPECTS OF DOING BUSINESS
Term
MARKETING
Definition
MEANS OF COMMUNICATION INFORMATION ABOUT A PRODUCT TO ENCOURAGE CONSUMERS TO PURCHASE THE PRODUCT
Term
ESTRANGED
Definition
TO BE SEPERATED OR DISCONNECTED FROM SOMETHING
Term
ALIENATION
Definition
A FEELING OF DISCONTENT OR DISSATISFACTION
Term
MONEY
Definition
ANYTHING THAT SERVES AS A MEDIUM OF EXCHANGE
Term
MEDIUM OF EXCHANGE
Definition
ANYTHING THAT IS GENERALLY ACCEPTED AS A STANDARD OF VALUE I A PARTICULAR COUNTRY OF REGION
Term
BARTERING
Definition
THE DIRECT EXCHANGE OF GOODS OR SERVICES BETWEEN PEOPLE WITHOUT USING ANY FORM OF MOENY
Term
MONEY= (THREE THINGS)
Definition
1. MEDIUM OF EXCHANGE
2. A STABLE STANDARD OF VALUE
3. SERVES AS A STOREHOUSE OF VALUE
Term
COMMODITY MONEY
Definition
MONEY THAT IS A COMMODITY AND HAS VALUE AS OTHER THINGS
Term
FIAT MONEY
Definition
MOENY THAT HAS VALUE ONLY BECAUSE ITS DECLARED TO HAVE VALUE
Term
DIGITAL MONEY
Definition
A FORM OF ELECTRONIC MONEY THAT CAN BE USED TO PAY FOR GOODS AND SERVICES
Term
CREDIT
Definition
ACCESS TO BORROWED MONEY, DEFERRED PAYMENT FOR GOODS AND SERVICES, ALMOST ALWAYS WITH INTEREST
Term
INTEREST RATE
Definition
AMOUNT OF MONEY THAT MUST BE PAID ON TOP OF THE PRINCIPAL EXPRESSED IN A PERCENTAGE OF THE AMOUNT BORROWED
Term
INTEREST
Definition
PAYMENT MADE FOR THE USE OF BORROWED MONEY
Term
SHORT TERM INTEREST RATE
Definition
THE INTEREST RATE ON A LOAN THAT ARE IN LESS THAN 1 YEAR
Term
LONG TERM INTEREST RATE
Definition
INTEREST RATE ON A LOAN THAT WILL BE PAID BACK IN MORE THAN 1 YEAR
Term
ASSETS
Definition
THINGS OF VALUE THAT A PERSON OR BUSINESS OWNS
Term
LIABILITIES
Definition
WHAT A PERSON OWES - THEIR DEBT
Term
NET WORTH
Definition
ASSETS MINUS LIABILITIES, ALSO KNOWN AS EQUITY
Term
BANK RUN
Definition
A SITUATION THAT OCCURS WHEN MANY DEPOSITERS SHOW UP AT ONCE AND DEMAND THE BALANCE OF THEIR DEPOSITS IN CASH
Term
FRACTIONAL RESERVE
Definition
THE FRACTION OF THE BANK'S CUSTOMER DEPOSITS KEPT ON HAND/ IN RESERVE TO SATISFY DEMANDS FOR WITHDRAWLS
Term
REQUIRED RESERVE RATIO
Definition
THE MINIMUM PERCENTAGE OF TOTAL DEPOSITS THAT A BANK MUST HOLD ON HAND
Term
EXCESS RESERVES
Definition
AN AMOUNT HELD BY THE BANK ABOVE ITS REQUIRED RESERVE
Term
FULL RESERVE BANKING
Definition
A SYSTEM IN WHICH ALL DEPOSITS ARE BACKED UP BY ASSETS WITH A STORE VALUE
Term
FEDERAL DEPOSIT INSURANCE CORPORATION
Definition
A FEDERAL INSURANCE PROGRAM ON BANK DEPOSITS
Term
FEDERAL RESERVE BANK (FED)
Definition
THE CENTRAL BANK OF THE U.S. THAT MANAGES THE BANKING SYSTEM, CONTROLS MONETARY POLICY AND OVERSEES THE ECONOMY
Term
WHAT THREE THINGS DOES THE FED DO?
Definition
1. REGULATES AND WATCHES BANKS
2. ACTS AS A BANK TO BANKS
3. HELPS KEEP BANKS AND ECONOMY STABLE BY CONTROLLING MONEY SUPPLY
Term
MONEY SUPPLY
Definition
THE AMOUNT OF MONEY IN CIRCULATION IN THE ECONOMY
Term
LIQUIDITY
Definition
THE EASE WITH WHICH AN ASSET CAN BE TURNED INTO ITS FULL CASH VALUE
Term
TRAVELERS CHECK
Definition
CHECKS ISSUED BY A FINANCIAL INSTITUTION WHICH FUNCTION AS CASH BUT ARE PROTECTED AGAINST LOSS OR THEFT
Term
MONETARY POLICY
Definition
THE REGULATION OF THE MONEY SUPPLY THROUGH VARIOUS TOOLS OF GOVERNMENT ACTION
Term
EXPANSIONARY MONETARY POLICY
Definition
ANY POLICY THAT INCREASES THE MONEY SUPPLY, SUCH AS PURCHASING GOVERNMENT BONDS, AND LOWERING THE FEDERAL FUNDS INTEREST RATE
Term
CONTRACTIONARY MONETARY POLICY
Definition
ANY POLICY THAT REDUCES THE MONEY SUPPLY, SUCH AS SELLING GOVERNMENT BONDS, RAISING THE RESERVE REQUIREMENT, AND RAISING THE FEDERAL FUNDS INTEREST RATE
Term
DISCOUNT RATE
Definition
THE INTEREST RATE THE FED CHARGES TO BANKS FOR DISCOUNT WINDOW LOANS, WHICH ARE OVERNIGHT LOANS A BANK TAKES IF IT NEEDS EXTRA FUNDS TO MEET IT'S REQUIRED RESERVES AT THE END OF THE DAY
Term
OPEN MARKET OPERATIONS
Definition
SALES AND PURCHASES OF U.S. TREASURY BONDS OR T-BONDS BY THE FED
Term
BONDS
Definition
INVESTMENTS THAT PAY A SPECIFIC INTEREST RATE OVER A SPECIFIC PERIOD OF TIME
Term
WHAT ARE THE 3 TOOLS OF MONETARY POLICY?
Definition
1. REQUIRED RESERVE RATIO
2. DISCOUNT RATE
3. OPEN MARKET OPERATIONS
Term
STOCK RETURN
Definition
A CERTIFICATE SHOWING A SHARE OF OWNERSHIP IN A CORPORATION
Term
RISK AVERSION
Definition
THE AMOUNT OF RELUCTANCE A PERSON HAS TO TAKING CHANCES
Term
COMPOUNDING
Definition
LETS AN ASSET GENERATE EARNINGS, THEN REINVEST THOSE EARNING TO GENERATE THEIR OWN EARNINGS
Term
SHARE
Definition
ONE UNIT OF OWNERSHIP IN A CORPORATION
Term
STOCK CERTIFICATES
Definition
PIECES OF PAPER REPRESENTING OWNERSHIP SHARES IN A CORPORATION
Term
INITIAL PUBLIC OFFERING
Definition
THE FIRST SALE OF A STOCK TO THE PUBLIC, ALSO CALLED AN IPO
Term
STOCK HOLDER
Definition
A PERSON WHO OWNS A SHARE OF STOCK IN A CORPORATION, ALSO KNOWN AS A SHARE HOLDER
Term
DIVIDENDS
Definition
A SHARE OF A COMPANY'S PROFITS THAT THE COMPANY PAYS TO INVESTORS
Term
CAPITAL GAIN
Definition
AN INCREASE IN THE VALUE OF AN INVESTMENT THAT GIVES IT A HIGHER WORTH THAN THE ORIGIONAL PURCHASE PRICE
Term
BOARD OF DIRECTORS
Definition
A GROUP OF PEOPLE ELECTED BY THE STOCKHOLDERS TO RUN THE CORPORATION
Term
OUTSTANDING SHARES
Definition
THE TOTAL NUMBER OF SHARES ISSUED
Term
PRIVATE COMPANY
Definition
A COMPANY WHOSE OWNERSHIP IS HELD ENTIRELY IN PRIVATE HANDS
Term
PUBLIC COMPANY
Definition
A COMPANY THAT HAS OFFERED STOCKS TO THE PUBLIC IN AN INITIAL PUBLIC OFFERING
Term
SECURITY AND EXCHANGE COMMISSION (SEC)
Definition
AN AGENCY OF THE U.S. GOVERNMENT THAT REGULATES AND OVERSEES THE STOCK MARKET IN ORDER TO PROTECT INVESTORS
Term
CORPORATION
Definition
A BUSINESS OWNED BY STOCKHOLDERS THAT IS A LEGAL ENTITY WITH RIGHTS TO BUY, SELL, AND MAKE CONTRACTS
Term
COMMON STOCK (ORDINARY SHARES)
Definition
A STOCK THAT REPRESENTS OWNERSHIP IN A COMPANY
Term
PREFERRED STOCK
Definition
A STOCK THAT REPRESENTS CLAIM OF OWNERSHIP IN COMPANY AND HAS A HIGHER CLAIM ON ASSETS AND EARNINGS THAT COMMON STOCK
Term
MARKET CAPITALIZATION
Definition
A COMPANY'S OUTSTANDING SHARES MULTIPLIED BY IT'S SHARED PRICE
Term
BUBBLE
Definition
A SURGE IN PRICES BEYOND THE REAL VALUE OF THE ASSOCIATED ASSET
Term
CRASH
Definition
A MAJOR DECLINE IN THE PRICES
Term
PRIMARY MARKET
Definition
THE MARKET IN WHICH INVESTORS HAVE THE FIRST OPPORTUNITY TO BUY A NEWLY ISSUED SHARE
Term
SECONDARY MARKET
Definition
THE MARKET IN WHICH INVESTORS BUY AND SELL SHARES FROM EACH OTHER
Term
STOCK EXCHANGE
Definition
A PLACE WHERE BUYERS AND SELLERS OF STOCKS MEET AND AGREE ON A PRICE FOR A TRADE
Term
AUCTION MARKET
Definition
A STOCK MARKET IN WHICH BUYERS AND SELLERS ENTER COMPETITIVE OFFERS SIMONTANIOUSLY
Term
OVER-THE-COUNTER MARKET
Definition
A STOCK MARKET WHERE TRADES OCCUR VIA A NETWORK OF COMPUTERS
Term
FULL SERVICE BROKER
Definition
A BROKER THAT PROVIDES A WIDE VARIETY OF SERVICES TO CUSTOMERS INCLUDING INVESTMENT RESEARCH AND ADVICE
Term
DISCOUNT BROKER
Definition
A BROKER WHO HANDLES BUY AND SELL ORDERS AT A REDUCED COMMISSION, BUT PROVIDES NO INVESTMENT ADVICE
Term
VALUE STOCK
Definition
A STOCK THAT APPEARS ATTRACTIVE BECAUSE OF VALUABLE ASSETS OWNED BY ITS COMPANY, PARTICULARLY CASH AND REAL ESTATE AND A HIGH DIVIDEND FIELD
Term
GROWTH STOCK
Definition
A STOCK THAT APPEARS ATTRACTIVE BECAUSE OF POTENTIAL INCREASES IN THE PRICE OF THE STOCK LEADING TO A CAPITAL GAIN
Term
SOCIALLY RESPONSIBLE INVESTING
Definition
INVESTING IN COMPANIES THAT ARE CONSIDERED ETHICAL
Term
FUNDAMENTAL ANALYSIS
Definition
ANALYSIS THAT FOCUSES ON A COMPANY'S SPECIFIC TRAITS AND ON GENERAL ECONOMIC CONDITIONS TO UNDERSTAND THE BEHAVIOR OF A PARTICULAR COMPANY'S STOCK
Term
TECHNICAL ANALYSIS
Definition
ANALYSIS THAT FOCUSES ON THE ACTIVITY OF THE STOCK MARKET TO UNDERSTAND THE BEHAVIOR OF A PARTICULAR COMPANY'S STOCK
Term
EARNINGS PER SHARE
Definition
THE PORTION OF A COMPANY'S PROFIT ALLOCATED TO EACH OUTSTANDING SHARE OF COMMON STOCK
Term
VOLUME
Definition
NUMBER OF SHARES TRADED IN A GIVEN TIME PERIOD
Term
HERD INSTINCT
Definition
A MENTALITY THAT CAUSES PEOPLE TO FOLLOW CURRENT TRENDS
Term
MARKET PSYCHOLOGY
Definition
THE OVERALL SENTIMENT OR FEELING OF INVESTORS IN THE MARKET
Term
BULL
Definition
INVESTOR WHO THINKS THE MARKET OR A SPECIFIC STOCK WILL RISE
Term
BEAR
Definition
INVESTOR WHO RELIEVES THE MARKET OR A SPECIFIC STOCK IS HEADED DOWNWARD
Term
BULL MARKET
Definition
A STOCK MARKET IN WHICH PRICES ARE RISING OR ARE EXPECTED TO RISE
Term
BEAR MARKET
Definition
A STOCK MARKET IN WHICH PRICES ARE FALLING OR EXPECTED TO FALL
Term
VOLATILE
Definition
CHANGING QUICKLY AND IN GREAT EXTREMES
Term
COMMODITY
Definition
SOMETHING USEFUL THAT CAN BE BOUGHT AND SOLD
Term
PRIMARY PRODUCT
Definition
A RAW, UNPROCESSED GOOD THAT IS USED TO PRODUCE OTHER GOODS
Term
CASH MARKET
Definition
A MARKET WHERE COMMODITIES ARE TRADED ON THE SPOT FOR MONEY
Term
FORWARD CONTRACT
Definition
A CONTRACT TO DELIVER A SPECIFIED CASH COMMODITY TO A BUYER SOMETIME IN THE FUTURE
Term
DEFAULT
Definition
FAILURE TO LIVE UP TO AN OBLIGATION
Term
COMMODITY EXCHANGE
Definition
AN ORGANIZATION THAT SETS AND ENFORCES RULES FOR THE TRADING COMMODITIES AND PROVIDES A PLACE WHERE TRADING TAKE PLACE
Term
NON-FERROUS
Definition
NOT COMPOSED OF OR CONTAINING IRON
Term
FUTURES CONTRACT
Definition
A CONTRACT OBLIGATING A BUYER TO PURCHASE A COMMODITY, OR A SELLER TO SELL A COMMODITY AT A PREDETERMINED FUTURE DATE AND PRICE
Term
TRANSFERABLE
Definition
SOMETHING THAT CAN BE GIVEN OR SOLD TO SOMEONE ELSE
Term
EQUITY
Definition
OWNERSHIP OF AN ASSET
Term
BONDHOLDER
Definition
PERSON WHO OWNS A BOND AND THEREFORE HOLDS SOMEONE ELSE IN DEBT
Term
FIXED INCOME INVESTMENT
Definition
INVESTMENT THAT PROVIDES SET AND GARENTEED PAYMENTS
Term
FACE VALUE
Definition
THE AMOUNT OF MONEY A BOND HOLDER RECEIVES WHEN A BOND MATURES
Term
MATURITY DATE
Definition
THE DATE WHEN THE DEBT ON THE BOND IS FULLY REPAID
Term
COUPON
Definition
THE AMOUNT THE BOND HOLDER RECEIVES AN INTEREST PAYMENTS
Term
INDENTURE
Definition
THE CONTRACT BETWEEN AN ISSUER OF BONDS AND THE BOND HOLDER
Term
BOND CERTIFICATE
Definition
PIECE OF PAPER ISSUED BY A GOVERNMENT OR CORPORATION TO RAISE MONEY
Term
THE THREE MAJOR TYPES OF MAJOR BONDS:
Definition
1. U.S. TREASURY BONDS
2. MUNICIPAL BONDS
3. CORPORATION BONDS
Term
BOND RATING
Definition
A BOND ISSUER'S PROBABILITY OF DEFAULTING
Term
JUNK BONDS
Definition
A BOND WITH A HIGH YIELD
Term
YIELD
Definition
ANNUAL PERCENTAGE RETURN ON AN INVESTMENT
Term
PRIMARY BOND MARKET
Definition
WHERE BONDS ARE SOLD DIRECTLY TO THE ISSUER
Term
SECONDARY BOND MARKET
Definition
WHEN INVESTORS BUY AND SELL PREVIOUSLY IS USED ISSUED BONDS BEFORE THEIR MATURITY DATE
Term
PREMIUM
Definition
THE DIFFERENCE BETWEEN THE HIGHER PRICE PAID FOR A BOND AND THE BOND'S FACE VALUE
Term
DISCOUNT
Definition
WHEN THE PRICE IS LOWER THAT THE FACE VALUE
Term
CURRENCY EXCHANGE MARKET
Definition
WHERE FOREIGN CURRENCIES ARE TRADED
Term
CURRENCY ZONES
Definition
REGIONS WHERE DIFFERENT CURRENCIES ARE DOMINANT
Term
EURO
Definition
THE CURRENCY USED BY THE COUNTRIES THAT ARE MEMBERS OF THE EUROPEAN UNION
Term
CURRENCY EXCHANGE
Definition
BUYING ONE CURRENCY WITH ANOTHER
Term
EXCHANGE RATE
Definition
THE COST OF BUYING ONE CURRENCY WITH ANOTHER
Term
EXCHANGE RATE REGIME
Definition
A WAY A COUNTRY MANAGES ITS CURRENCY IN RELATION TO FOREIGN CURRENCIES
Term
FLOATING CURRENCY
Definition
A CURRENCY WITH AN EXCHANGE RATE THAT IS DETERMINED BY THE FREE MARKET
Term
FIXED CURRENCY
Definition
A CURRENCY WITH AN EXCHANGE RATE THAT IS TIED TO ANOTHER CURRENCY OR SOME COMMODITY
Term
MARGIN
Definition
WHEN BROKERS LEND CUSTOMERS MONEY TO MAKE PURCHASES
Term
LEVERAGE
Definition
THE USE OF BORROWED MONEY TO INCREASE THE POTENTIAL RETURN OF AN INVESTMENT
Term
MARKET LIQUIDITY
Definition
THE ABILITY TO BUY OR SELL A PARTICULAR ITEM QUICKLY FOR ITS CASH EQUIVALENT
Term
SEED CAPITAL
Definition
FUNDING TO DO THE INITIAL RESEARCH AND PLANNING FOR A BUSINESS
Term
START UP
Definition
FUNDING TO PAY FOR EQUIPMENT, RENT, AND SUPPLIES FOR ABOUT THE FIRST YEAR OR OPERATION
Term
DEBT FINANCING
Definition
RAISING MONEY BY TAKING A LOAN
Term
EQUITY FINANCING
Definition
RAISING MONEY BY SELLING STOCK TO INVESTORS
Term
VENTURE CAPITAL
Definition
FUNDS FOR A BUSINESS PROVIDED BY A GROUP OF INVESTORS
Term
ANGEL INVESTORS
Definition
WEALTHY INVESTORS WHO PROVIDE FUNDS FOR START UPS
Term
GOING PUBLIC
Definition
SELLING SHARES OF STOCK TO THE PUBLIC FOR THE FIRST TIME
Term
PRIVATE COMPANY
Definition
A COMPANY WHOSE OWNERSHIP IS HELD ENTIRELY IN PRIVATE HANDS
Term
PUBLIC COMPANY
Definition
A COMPANY THAT HAS OFFERED STOCKS TO THE PUBLIC IN AN INITIAL PUBLIC OFFERING
Term
INITIAL PUBLIC OFFERING
Definition
THE FIRST SALE OF A STOCK TO THE PUBLIC, ALSO CALLED IPO
Term
LOCK DOWN
Definition
A PERIOD WHEN EMPLOYEES OF A PUBLIC COMPANY ARE BARRED FROM SELLING THEIR COMPANY'S STOCKS
Term
INFRASTRUCTURE
Definition
PHYSICAL SYSTEMS THAT ENABLE TRANSPORTATION AND COMMERCE
Term
FREE RIDER
Definition
A NON-PAYING USER OF A GOOD
Term
INCOME TAX
Definition
A TAX PAID TO THE GOVERNMENT ON NET PERSONAL OR BUSINESS INCOME
Term
SALES TAX
Definition
A TAX ON THE SALE OF RETAIL GOODS AND SERVICES
Term
TAX BASE
Definition
A PERSONS TOTAL PROPERTY AND RESOURCES SUBJECT TO TAXATION
Term
WEALTH
Definition
THE NET VALUE OF AN INDIVIDUAL OR BUSINESS INCLUDING ALL LIQUID FIXED ASSETS
Term
WITHHOLDING
Definition
A TAX PAYMENT TAT IS TAKEN DIRECTLY OUT OF WAGES OR OTHER INCOME
Term
TAX RETURN
Definition
A TAX FORM USED TO CALCULATE AND DECLARE INCOME TAX
Term
TAX REFUND
Definition
AN AMOUNT THAT A GOVERNMENT GIVES BACK TO A TAX PAYER WHO HAS PAID MORE TAXES THAN WERE DUE
Term
PAY ROLL TAX
Definition
A TAX AN EMPLOYER PAYS ON BEHALF OF AN EMPLOYER BASED ON THE EMPLOYEES WAGE OR SALARY
Term
SOCIAL SECURITY
Definition
A FEDERAL PROGRAM THAT PROVIDES RETIREMENT INCOMES HEALTH CARE FOR THE AGED, AND DISABILITY COVERAGE FOR ELIGIBLE WORKERS AND THEIR DEPENDENTS
Term
MEDICARE
Definition
A FEDERAL HEALTH INSURANCE PROGRAM FOR PEOPLE AGED 65 AND OLDER AND THOSE WITH DISABILITIES
Term
UNEMPLOYMENT COMPENSATION PROGRAMS
Definition
PROGRAMS THAT PROVIDE TEMPORARY AND PARTIAL WAGE REPLACEMENT TO INVOLUNTARILY UNEMPLOYMENT WORKERS
Term
PROPERTY TAX
Definition
TAX ASSESSED ON REAL ESTATE
Term
CAPITAL GAINS TAX
Definition
A TAX ON THE PROFITS FROM SELLING AN ASSET
Term
TAX BREAKS
Definition
PROVISIONS OF THE TAX CODE THAT REDUCE THE AMOUNT OF TAX THAT IS OWED
Term
TAXABLE INCOME
Definition
THE MOUNT OF INCOME THAT CAN BE TAXED
Term
TAX CREDIT
Definition
A PART OF THE TAX OWED THAT DOES NOT NEED TO BE PAID; REDUCTION OF TOTAL AMOUNT OF TAXES OWED
Term
EXCISE TAX
Definition
A TAX ON THE SALE OF USE OF A SPECIFIC PRODUCT OR TRANSACTION
Term
LUXURY TAX
Definition
A TAX PAID AN EXPENSIVE GOODS AND SERVICES CONSIDERED TOO BE NONESSENTIAL
Term
SIN TAX
Definition
A TAX ON A GOOD, SERVICE, OR ACTVITY THAT IS CONSIDERED PHYSICALLY OR MORALLY DAMAGING OR DETRIMENTAL
Term
PROGRESSIVE TAX
Definition
A TAXATION METHOD THAT TAKES A LARGER PERCENTAGE FROM THE INCOME OF HIGH INCOME PEOPLE THAT IS DOES FROM LOW INCOME PEOPLE
Term
ABILITY TO PAY PRINCIPLE
Definition
THE IDEA THAT TAX BURDENS SHOULD BE RELATED TO AN INDIVIDUALS CAPACITY TO PAY
Term
INCOME TAX BRACKETS
Definition
VARIOUS RATES OF TAXATION ASSOCIATED WITH DIFFERENT LEVELS OF INCOME
Term
REGRESSIVE TAX
Definition
A TAX THAT TAKES A LARGER PERCENTAGE FROM THE INCOME OF LOW INCOME PEOPLE THAT THE INCOME OF HIGH INCOME PEOPLE
Term
BENEFITS RECEIVED PRINCIPLE
Definition
THE IDEA THAT THOSE WHO ENJOY THE BENEFITS OF GOVERNMENT SERVICES SHOULD BEAR THE BURDEN OF TAXATION IN PROPORTION TO THE AMOUNT OF BENEFITS RECIEVED
Term
TARIFF
Definition
A TAX ON INTERNATIONAL TRADE
Term
REVENUE TARIFF
Definition
A TARIFF DESIGNED TO RAISE MONEY FOR THE GOVERNMENT
Term
PROTECTIVE TARIFF
Definition
A TARIFF DESIGNED TO PROTECT A DOMESTIC INDUSTRY
Term
RETALIATORY TARIFF
Definition
A TARIFF IMPOSED TO FIGHT AGAINST PROTECTIONISTS POLICIES BY ANOTHER COUNTRY
Term
INFANT INDUSTRIES
Definition
INDUSTRIES IN THE EARLY STAGES OF DEVELOPMENT
Term
DUMPING
Definition
A SITUATION WHEN ONE COUNTRY EXPORTS A SIGNIFICANT AMOUNT OF GOODS TO ANOTHER COUNTRY AT PRICES MUCH LOWER THAN IN THE DOMESTIC MARKET
Term
TRADE WAR
Definition
WHEN ONE NATION INCREASES TARIFFS ON GOODS IMPORTED FROM ANOTHER COUNTRY AND THAT COUNTRY RETALIATES BY ALSO RAISING TARIFFS
Term
BILATERAL
Definition
A MUTUALLY BENEFICIAL TRADE AGREEMENT BETWEEN TWO COUNTRIES
Term
NORMAL TRADE RELATIONS
Definition
A TREATY IN WHICH THE SIGNATORIES AGREE TO ACCORD EACH OTHER THE SAME FAVORABLE TERMS THAT ARE OFFERED IN AGREEMENTS WITH ANY OTHER NATION
Term
MULTILATERAL
Definition
SOMETHING INVOLVING MANY SIDES OR COUNTRIES
Term
GENERAL AGREEMENT ON TRADE AND TARIFFS (GATT)
Definition
AN AGREEMENT TO PROMOTE GLOBAL TRADE BETWEEN MEMBERS THROUGH A REDUCTION IN TARIFFS. IT ENDED IN 1995 WHEN THE MORE POWERFUL WORLD TRADE ORGANIZATION (WTO) WAS FORMED
Term
WORLD TRADE ORGANIZATION (WTO)
Definition
AN INTERNAIONAL ORGANIZATION THAT DEALS WITH GLOBAL RULES OF TRADE. IT WAS CREATED IN 1995 TO REPLACE GATT
Term
FISCAL POLICY
Definition
THE TAXATION AND SPENDING PRACTICES OF THE GOVERNMENT
Term
PUBLIC REVENUE
Definition
MONEY COLLECTED FROM THE PUBLIC
Term
FISCAL YEAR
Definition
THE ACCOUNTING PERIOD FOR AN ORGANIZATION OR GOVERNMENT; IN THE U.S. OCTOBER 1 THROUGH SEPTEMBER 30 I THE FISCAL YEAR
Term
PUBLIC EXPENDITURE
Definition
MONEY SPENT BY THE GOVERNMENT
Term
MANDATORY SPENDING
Definition
SPENDING THAT IS AUTOMATIC BY LAW
Term
DISCRETIONARY SPENDING
Definition
SPENDING THAT IS CONTROLLED THROUGH THE ANNUAL LEGISLATIVE PROCESS
Term
APPROPRIATION
Definition
A DECISION TO SPEND MONEY IN A PARTICULAR WAY
Term
SUBSIDY
Definition
A GOVERNMENT PAYMENT TO SOMEONE
Term
TRANSFER PAYMENT
Definition
MOVEMENT OF MONEY FROM ONE GROUP TO ANOTHER
Term
CONSTITUENTS
Definition
PEOPLE WHO LIVE IN THE POLITICAL DISTRICT OF A PARTICULAR REPRESENTATIVE
Term
PORK BARREL SPENDING
Definition
GOVERNMENT SPENDING TARGETED TOWARD WINNING POLITICAL SUPPORT
Term
PUBLIC SECTOR
Definition
THE PORTION OF THE ECONOMY COMPOSED OF GOVERNMENT OPERATIONS
Term
PRIVATE SECTOR
Definition
THE PORTION OF THE ECONOMY COMPOSED OF BUSINESS AND INDIVIDUALS
Term
NON-EXCLUDABLE
Definition
SOMETHING PEOPLE CANT BE KEPT FROM USING
Term
NON-RIVAL
Definition
WHEN SOMEONE ELSES USE DOESNT DIMINISH THE USABILITY OF A GOOD
Term
MERIT GOODS
Definition
GOODS THAT ARE BELIEVED TO BENEFIT BOTH INDIVIDUAL CONSUMERS AND THE SOCIETY AS A WHOLE
Term
GOVERNMENT CONTRACT
Definition
A CONTRACT BETWEEN THE GOVERNMENT AND A PRIVATE PRODUCER
Term
GOVERNMENT OWNED CORPORATION
Definition
A LEGAL ENTITY CREATED BY A GOVERNMENT TO EXERCISE SOME OF THE POWERS OF THE GOVERNMENT
Term
COMPETATIVE CONTRACT
Definition
A CONTRACT THAT IS AWARDED AFTER THE TAKING OF BIDS
Term
BID
Definition
TO OFFER A PRICE FOR A GOOD OR SERVICE
Term
NO-BID CONTRACT
Definition
A CONTRACT THAT IS AWARDED WITH LIMITED OR NO COMPETITION
Term
RISK
Definition
THE POSSIBILITY OF SUFFERING HARM OR LOSS
Term
MISREPRESENTATION
Definition
MAKING FALSE CLAIMS
Term
CONSUMER ADVOCACY
Definition
PROMOTING THE INTERESTS OF CONSUMERS
Term
OLOGOPOLY
Definition
A MARKET STRUCTURE CHARACTERIZED BY A FEW SELLERS WITH A HIGH AMOUNT OF MARKET CONCENTRATION
Term
MONOPOLY
Definition
A MARKET STRUCTURE IN WHICH ONE SELLER HAS A GOOD WITH NO CLOSE SUBSTITUTES
Term
FRAUD
Definition
AN INTENTIONAL OF REALITY FOR FINANCIAL GAIN
Term
VENDOR LOCK IN
Definition
A SITUATION IN WHICH A CONSUMER IS DEPENDENT ON A PRODUCERS FOR PRODUCTS AND SERVICES AND CANNOT MOCE TO ANOTHER PRODUCER WITHOUT SUBSTANTIAL SWITCHING COSTS LOCK IN FAVORS THE PRODUCER AT THE EXPENSE OF THE CONSUMER
Term
BID RIGGING
Definition
THE UNLAWFUL PRACTICE WHERE TWO OR MORE PRODUCERS AGREE EITHER NOT TO BID AGAINST ONE ANOTHER OR COORDINATE BIDS IN SUCH A WAY THAT PRICE IS ARTIFICIALLY INFLATED
Term
PREDATORY PRICING
Definition
SELLING A PRODUCT AT A PRICE THAT IS BELOW THE COST OF PRODUCTION IN ORDER TO PUSH COMPERTITORS OUT OF THE MARKET
Term
COLLUSION
Definition
AN AGREEMENT BETWEEN TWO OR MORE PARTIES TO ACT IN A WAY THAT WILL INFLUENCE THE FREE MARKET
Term
PRICE FIXING
Definition
AN AGREEMENT AMOUNG RIVAL PRODUCERS TO SELL AT THE SAME PRICE
Term
CARTEL
Definition
A GROUP OF PRODUCERS WHO WORKS COLLECTIVELY TO RAISE PRICES AND PROFITS
Term
PRODUCTION
Definition
THE PRACTICE OF INTENTIONALLY KEEPING SUPPLY LOW IN ORDER TO CREATE HIGH PRICES
Term
MARKET CONCENTRATION
Definition
AN INDUSTRY IN WHICH ONLY A FEW LARGE SELLERS DOMINATE SALES
Term
ECONOMIES OF SALE
Definition
INCREASED EFFICIENCY AND OFTEN REDUCED COSTS RESULTING FROM INCREASE IN THE SIZE OF OPERATIONS OR AMOUNT OF PRODUCTION
Term
ANTITRUST LAW
Definition
A LAW THAT PREVENTS BUSINESSES FROM FORMING MONOPOLIES OR ENGAGING IN OTHER PRACTICES THE RESTRICT COMPETITION
Term
LAD USE LAW
Definition
REGULATION LIMITING WHAT OWNERS CAN DO WITH THEIR PROPERTY
Term
ZONING ORDIANCE
Definition
A REGULATION LIMITING THE TYPE OF USE OF PROPERTIES IN PARTICULAR AREAS
Term
BUILDING CODES
Definition
REGULATIONS REQUIRING SAFE PRACTICES IN THE DESIGN AND CONSTRUCTION OF A BUILDING
Term
EMINENT DOMAIN
Definition
THE RIGHT OF A GOVERNMENT TO FORCIBLY PURCHASE PRIVATE PROPERTY FOR PUBLIC USE
Term
LABOR LAW
Definition
THE BODY OF LAW REGULATING THE RELATIONSHIP BETWEEN EMPLOYERS AND EMPLOYEES
Term
PRICE CEILING
Definition
A MAXIMUM ALLOWABLE PRICE
Term
FLOOR PRICE
Definition
A MINIMUM ALLOWABLE PRICE
Term
RATIONING
Definition
A RESTRICTION ON CERTAIN GOODS TO PREDETERMINED QUANTITIES
Term
BLACK MARKET
Definition
BUYING OR SELLING GOODS IN VIOLATION OF RESTRICTIONS SUCH AS PRICE CONTROLS OR RATIONING
Term
QUOTA
Definition
A LIMIT ON THE AMOUNT OF A CERTAIN GOOD THAT CAN BE IMPORTED
Term
EMBARGO
Definition
A PROHIBITION OR LIMITATION ON TRADE WITH A PARTICULAR COUNTRY
Term
MONEY LAUNDERING
Definition
THE MOVEMENT F ILLEGALLY ACQUIRED CASH THROUGH FINANCIAL SYSTEMS SO IT APPEARS TO BE LEGALLY ACQUIRED
Term
FREEZE ASSETS
Definition
THE WITH DRAWL OF SOMEONES MONEY FROM THEIR OWN BANK ACCOUNT OR A RESTRICTION PLACED ON AN ACCOUNT
Term
CAPITAL CONTROLS
Definition
GOVERNMENT LIMITATIONS ON THE FREE FLOW OF INVESTMENTS
Term
COEDUCATIONAL
Definition
BLACK AND WHITE STUDENTS IN THE SAME SCHOOL
Term
COST BENEFIT ANALYSIS
Definition
A DECISION MAKING PROCESS THAT SEEKS TO MAXIMIZE BENEFITS AND MINIMIZE COSTS
Term
THREE STAGES OF COST BENEFIT ANALYSIS
Definition
1. DECIDE HOW MUCH THE ACTION/DECISION WILL COST
2. CALCULATE THE AMOUNT OF BENEFIT YOU WILL RECEIVE FROM IT
3. COMPARE TO SEE WHICH IS BIGGER - COST OR BENEFITS
Term
SUBJECTIVE
Definition
VARYING FROM ONE INDIVIDUAL TO ANOTHER
Term
ASSOCIATES DEGREE
Definition
GRANTED BY A COMMUNITY COLLEGE, JUNIOR COLLEGE OR VOCATIONAL SCHOOL AFTER 2 YEARS OF COURSE WORK
Term
TENANT
Definition
SOMEONE WHO PAYS RENT TO USE LAND OR A BUILDING THAT IS OWNED BY SOMEONE ELSE
Term
LANDLORD
Definition
OWNER OF A PROPERTY WHO RENTS IT TO THOSE WHO LIVE THERE
Term
LEASE
Definition
A CONTRACT BETWEEN A RENTER AND LANDLORD
Term
MORTGAGE
Definition
A LOAN GIVEN TO PAY FOR A HOUSE OR OTHER TYPE OF REAL ESTATE
Term
INSURANCE
Definition
PROTECTION AGAINST A RISK
Term
6 DIFFERENT KINDS OF INSURANCE
Definition
1. AUTO 2. HEALTH 3. HOME OWNER
4. RENTERS 5. LIFE 6. DISABILITY
Term
PREMIUM
Definition
MONEY PAID TO THE INSURANCE COMPANY FOR ITS PROTECTION
Term
DEDUCTABLE
Definition
THE AMOUNT PAID BY A PERSON BEFORE HIS/HER INSURANCE COVERAGE STARTS
Term
HOME OWNERS INSURANCE
Definition
INSURANCE TO PROTECT THE CONTENTS AND STRUCTURE OF YOUR HOME AS WELL AS RESIDENTS/ VISITORS
Term
3 MAIN EXPENSES HOME OWNERS INSURANCE COVERS
Definition
1. DAMAGE TO HOUSE
2. DAMAGE OR LOSS OF CONTENTS IN HOUSE
3. INJURY TO PEOPLE IN HOUSE OR ON PROPERTY
Term
REPLACEMENT COST
Definition
THE COST OF BUYING OR MAKING A REPLACEMENT OF SOMETHING
Term
RENTERS INSURANCE
Definition
INSURANCE PROTECTING YOUR POSSESSIONS WHEN YOU ARE RENTING
Term
MANAGED CARE
Definition
AN INSURANCE PLAN WHERE A CORPORATION MANAGES WHICH DOCTORS YOU CAN SEE (PPO'S AND HMO'S)
Term
PRESCRIPTION CO-PAYS
Definition
AMOUNT OF MONEY PAID BY THE PURCHASER FOR PRESCRIPTION DRUGS BEFORE HEALTH INSURANCE COVERAGE APPLIES
Term
FEE-FOR VEHICLE
Definition
AN INSURANCE PLAN WHERE PATIENTS CHOOSE THEIR OWN DOCTORS AD HOSPITALS
Term
CHECKING ACCOUNT
Definition
AN ACCOUNT THAT CAN BE WITHDRAWN FROM WITH A CHECK OR DEBIT CARD
Term
ACCRUE
Definition
ACCUMULATE OR INCREASE
Term
PAYEE
Definition
THE PERSON BEING PAID BY A CHECK
Term
CHECKBOOK REGISTER
Definition
WHERE TO RECORD THE DATE, AMOUNT PAID, AND PAYEE AND TO KEEP TRACK OF THE RUNNING BALANCE OF THE ACCOUNT
Term
DEBIT CARD
Definition
A CARD THAT CAN BE USED TO PURCHASE THINGS AND THAT TAKES MONEY DIRECTLY FROM YOUR CHECKING ACCOUNT
Term
CREDIT CARD
Definition
A CARD YOU USE TO PURCHASE THINGS FOR WHICH YOU ARE BILLED LATER
Term
SAVINGS ACCOUNT
Definition
AN ACCOUNT THAT PAYS INTEREST BUT THAT CANT BE WITHDRAWN FROM BY USING A CHECK OR DEBIT CARD
Term
INTEREST
Definition
PAYMENT MADE FOR THE USE OF BORROWED MONEY
Term
CREDIT UNION
Definition
A NON-FOR-PROFIT COOPERATIVE FINANCIAL INSTITUTION
Term
EXPENSES
Definition
MONEY SPENT TO PAY BILLS AND MAKE PURCHASES
Term
INCOME
Definition
MONEY EARNED OR RECIEVED
Term
BUDGET
Definition
A FINANCIAL PLAN THAT SPELLS OUT EXPENSES, INCOME, AND PROJECTED SAVINGS
Term
DISCRETIONARY FUNDS
Definition
MONEY THAT CAN BE USED WHENEVER ITS NEEDED FOR ANY EXPENSE
Term
PRINCIPAL
Definition
THE TOTAL AMOUNT BORROWED FOR ANY TYPE OF LOAN
Term
DOWN PAYMENT
Definition
A CASH PAYMENT FOR PART OF THE LOAN
Term
INTEREST RATE
Definition
AMOUNT OF MONEY THAT MUST BE PAID ON TOP OF THE PRINCIPAL, EXPRESSED IN A PERCENTAGE OF THE AMOUNT BORROWED
Term
LOAN TERM
Definition
AMOUNT OF TIME ALLOWED TO PAY BACK A LOAN
Term
AMORTIZATION TABLE
Definition
LISTING OF INFORMATION ABOUT A LOAN, INCLUDING THE PRINCIPAL REMAINING TO PAY OFF AND THE AMOUNT OF INTEREST PAID
Term
FINANCING
Definition
A WAY OF PAYING FOR SOMETHING YOU DONT HAVE ENOUGH MONEY TO BUY OUTRIGHT
Term
LEASE
Definition
RENT FOR A SPECIFIC PERIOD OF TIME
Term
DEPRECIATION
Definition
THE DIFFERENCE BETWEEN THE VALUE OF SOMETHING AT ONE TIME AND THE VALUE AT A LATER TIME
Term
COLLATERAL
Definition
SOMETHING THAT CAN BE TAKEN BACK OR AWAY IF A PERSON DEFAULTS ON A LOAN
Term
REPOSSES
Definition
TAKE THE CARE BACK FROM THE BUYER
Term
FINANCIAL AID
Definition
MONETARY ASSISTANCE PROVIDED TO PAY FOR COLLEGE
Term
GIFT AID
Definition
MONETARY ASSISTANCE THAT DOESNT HAVE TO BE PAID BACK (SCHOLARSHIPS AND GRANTS)
Term
SELF-HELP AID
Definition
MONETARY ASSISTANCE THAT MUST BE PAID BACK (STUDENT LOANS)
Term
UNSECURRED
Definition
A LOAN TYPE THAT IS NOT BACKED BY ANY COLLATERAL
Term
APPRAISAL
Definition
A DETERMINATION OF THE VALUE OF SOMETHING
Term
CONVENTIONAL LOANS
Definition
A MORTGAGE FUNDED BY A PRIVATE COMPANY
Term
FIXED RATE MORTGAGE
Definition
A HOME LOAN WITH A MONTHLY PAYMENT THAT NEVER CHANGES
Term
ADJUSTABLE RATE MORTGAGE
Definition
A HOME LOAN WITH A INTEREST RATE THAT CHANGES FROM YEAR TO YEAR
Term
SPECIALIZATION
Definition
FOCUS ON A SPECIFIC NARROWLY DEFINED TASK
Term
OPEC
Definition
ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES
Term
PROTECTIONISTS
Definition
POLICIES DESIGNED TO KEEP A COUNTRYS ECONOMY, BUSINESSES, AND WORKERS SAFE FROM COMPETITION
Term
ABSOLUTE ADVANTAGES
Definition
THE ABILITY OF ONE PRODUCER TO ENGAGE IN MORE EFFICIENT PRODUCTION THAT ANOTHER PRODUCER
Term
COMPARATIVE ADVANTAGE
Definition
A SITUATION WHEN ONE PRODUCER CAN PRODUCE A GOOD AT A LOWER OPPORTUNITY COST THAN ANOTHER PRODUCER
Term
OPPORTUNITY COST
Definition
THE BENEFITS OF THE BEST ALTERNATIVE OPTION THAT ARE GIVEN UP BY A PARTICULAR DECISION
Term
INTERDEPENDENCE
Definition
RELIANCE ON PEOPLE IN OTHER PLACES FOR GOODS AND SERVICES
Term
STANDARD OF LIVING
Definition
THE AMOUNT OF GOODS AND SERVICES AVAILABLE TO THE AVERAGE PERSON
Term
COLONIZATION
Definition
THE ACT OF STRONGER COUNTRIES TAKING CONTROL OF WEAKER COUNTRIES AND MAKING THEM DEPENDENT
Term
INFRASTRUCTURE
Definition
PHYSICAL SYSTEMS THAT ENABLE TRANSPORTATION AN COMMERCE
Term
CONTAINERIZATION
Definition
THE USE OF STANDARD CONTAINERS TO UNITIZE CARGO FOR TRANSPORTATION, SUPPLY, AND STORAGE
Term
LIBERALIZATION
Definition
ACTIONS TAKEN TO REDUCE TARIFFS AND REMOVE OTHER MEASURES THAT RESTRICT INTERNATIONAL TRADE
Term
REGIONALIZATION
Definition
THE GROWTH OF NETWORKS OF INTERDEPENDENCE WITHIN MULTINATIONAL REGIONS OF THE WORLD
Term
INDUSTRIALIZATION
Definition
THE DEVELOPEMENT OF INDUSTRY ON AN EXTENSIVE SCALE; A SOCIETYS MOVEMENT OF POPULATION AND RESOURCES FROM FARM PRODUCTION TO MANUFACTURING PRODUCTION
Term
TRANSPARENCY
Definition
THE ABILITY OF THE PUBLIC TO KNOW ABOUT AN INSTITUTIONS DECISIONS AN DECISION MAKING PROCESSES
Term
FOREIGN EXCHANGE RESERVES
Definition
THE FOREIGN CURRENCY DEPOSITS HELD BY CENTRAL BANKS
Term
CAPITAL MOBILITY
Definition
THE EXTENT TO WHICH INVESTMENT AND MONEY MOVES FREELY AROUND THE WORLD
Term
FOREIGN AID
Definition
MONEY GIVEN BY ONE GOVERNMENT TO ANOTHER GOVERNMENT
Term
FOREIGN INVESTMENT
Definition
INVESTMENT IN AN ENTERPRISE OR BUSINESS THAT OPERATE OUTSIDE THE INVESTORS COUNTRY
Term
PORTFOLIO INVESTMENT
Definition
STOCK AND BOND PURCHASES
Term
FOREIGN DIRECT INVESTMENT
Definition
INVESTMENT THAT ESTABLISHES A LASTING INTEREST IN ANOTHER COUNTRY
Term
CAPITAL FLIGHT
Definition
THE ACT OF INVESTORS MOVING OUT OF A PARTICULAR COUNTRY EITHER IN FEAR OF INSTABILITY OR IN SEARCH OF HIGHER PROFITS ELSEWHERE
Term
CONDITIONALITY
Definition
A SET OF POLICY RECOMMENDATIONS THAT MUST BE ADOPTED WHEN ACCEPTING A LOAN
Term
CATALYST
Definition
AN AGENT THAT STIMULATES OR PRECIPITATES A REACTION, DEVELOPEMENT, OR CHANGE
Term
SUSTAINABLE DEVELOPEMENT
Definition
DEVELOPEMENT THAT MEETS THE NEEDS OF THE PRESENT WITH OUT COMPROMISING THE ABILITY OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS
Term
CONSENSUS
Definition
AN OPINION OR POSITION REACHED BY A GROUP AS A WHOLE
Term
ECONOMIC SANCTIONS
Definition
PENALTIES APPLIED TO INFLUENCE THE BEHAVIOR OF CORPORATIONS, NATIONS, OR GROUPS OF NATIONS
Term
BOYCOTT
Definition
THE REFUSAL TO PURCHASE THE PRODUCTS OF AN INDIVIDUAL OR CORPORATION AS A WAY TO CAUSE SOCIAL AND POLITICAL PRESSURE IN HORES INFLUENCING CHANGE
Term
TRADE EMBARGO
Definition
A GOVERNMENT ORDER CLOCKING TRADE WITH ANOTHER COUNTRY
Term
PUNITIVE
Definition
INFLICTING OR AIMING TO INFLICT PUNISHMENT
Term
AUTARKY
Definition
A POLICY OF NATIONAL SELF-SUFFICIENCY AND ECONOMIC INTERDEPENDENCE FROM IMPORTS OR ECONOMIC AID
Term
TRADE SANCTION
Definition
A PENALTY IMPOSED BY ONE NATION INTO ONE OR MORE OTHER NATIONS
Term
TRADE WAR
Definition
WHEN ONE NATION INCREASES TARIFFS ON GOODS IMPORTED FROM ANOTHER COUNTRY AND THAT COUNTRY RETALIATES BY ALSE RAISING TARIFFS
Term
HAZARDS OF GLOBALIZATION
Definition
1,ECONOMIC DEVELOPEMENT
2. LABOR RIGHTS
3.ENVIRONMENTAL PROBLEMS
4. HUMAN RIGHTS
5.TERROISM
Term
ECONOMIC DEVELOPEMENT
Definition
SUSTAINED INCREASE IN THE STANDARD OF LIVING OF A COUNTRYS POPULATION
Term
DEVELOPED COUNTRIES
Definition
COUNTRIES IN WHICH AVERAGE ANNUAL PER CAPITA INCOME EXCEEDS $9,266 AND MOST PEOPLE HAVE A HIGH STANDARD OF LIVING
Term
DEVELOPING COUNTRIES
Definition
COUNTRIES IN WHICH AVERAGE ANNUAL PER CAPITA INCOME IS UNDER $9,266 AND/OR MOST PEOPLE DO NOT ENJOY A HIGH STANDARD OF LIVING
Term
TEXTILES
Definition
FABRICS, CLOTHS, AND MATERIALS
Term
MIGRATION
Definition
THE MOVEMENT OF PEOPLE FROM ONE LOCATION OR ONE COUNTRY TO ANOTHER
Term
EMIGRATION
Definition
MIGRATION FROM ONES NATIVE COUNTRY IN ORDER TO SETTLE IN ANOTHER
Term
BRAIN DRAIN
Definition
LOSS OF INTELLECTUAL AND TECHNICAL PERSONNEL FROM THE WORK FORCE
Term
HUMAN RIGHTS
Definition
HE CONCEPT OF HUMAN FACTORS SUCH AS ETHINICITY, NATIONALITY, OR GENDER
Term
TERRORISM
Definition
THE USE OR THREAT OF VIOLENCE TO ACHIEVE AN OBJECTIVE
Term
HOMOGENIZED
Definition
BLENDED, MIXED, OR COMBINED SO INDIVIDUAL PARTS BECOME INDISTINGUISHABLE
Term
OFF SHORING
Definition
THE PRACTICE OF SHIFTING SERVICE AND MANUFACTURING ACTIVITIES ABROAD
Term
OUTSOURCING
Definition
THE PRACTICE OF CONTRACTING OUT SERVICE AND MANUFACTURING ACTIVITIES TO OTHER BUSSINESS USUALLY IN FOREIGN COUNTRIES
Term
TRADE DEFICIT
Definition
WHEN IMPORTS EXCEED EXPORTS
Term
INSOURCING
Definition
A SITUATION IN WHICH A NON U.S. COMPANY EMPLOYS U.S. WORKERS
Term
BALANCE OF TRADE
Definition
THE RATIO OF EXPORT TO IMPORTS
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