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US History II: Economics
Vocabulary to know for Economics Exam
26
Economics
11th Grade
02/14/2007

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Term
Bonds
Definition
A certificate of ownership of a specified portion of a debt due to be paid by a government or corporation to an individual holder and usually bearing a fixed rate of interest.
Term
Bears
Definition
To force prices downward in a market or a stock.
Term
Breakeven Point
Definition
The point at which the income from sale of a product or service equals the invested costs, resulting in neither profit nor loss
Term
Budget Restraint
Definition
Having the ability to stop spending, and stick to a budget.
Term
Bull Market
Definition
Occurs when almost all the stock prices are rising.
Term
Closed Economy
Definition
An ecomomy that doesn't take part in international trade.
Term
Command Economy
Definition
When a government controls the entire economy; communists.
Term
Common Stalk
Definition
Stalk holders can vote on company policies, but they are the last people to be payed of in the event of bankrupcy.
Term
Debt
Definition
A debt is when you borrow money and you have not payed it back yet.
Term
Durable Good
Definition
A good that will never expire, such as a pencil.
Term
Equity
Definition
The amount of money a buisness has after subtracting money they ow, outside of shareholders.
Term
Exports
Definition
Sales outside of the sending country.
Term
Federal Reserve Bank
Definition
The central Bank of the US. They can raise interest rates, lower interest rates, and they hold money for other countries.
Term
Fixed Cost
Definition
A cost that doesn't change no matter how many are produced or how much is produced, such as the rent on an apartment.
Term
Imports
Definition
The purchases of foreign goods or services.
Term
Liquidity
Definition
How easy it is to turn an asset into cash.
Term
Margin
Definition
The difference made by buying one extra unit of something. It is how much more someone who have to pay for something if they just wanted one more.
Term
Market Economy
Definition
The opposite of a command economy; buying and selling is free to happen whenever and however.
Term
NAFTA
Definition
North American Free Trade Agreement, made between US, Mexico and Canada. Free trade throughout all of those countries.
Term
NASDAQ
Definition
National Association of Securities Dealers Automated Quotation:Largest US stock exchange company.
Term
None Durable Goods
Definition
Goods that will expire at some point or another, such as milk.
Term
Open Economy
Definition
An economy that allows trading throughout the world.
Term
Oppurtunity Cost
Definition
The cost to get something. Not just the money value, but the cost of other stuff you could have bought with that money.
Term
Preferred Stalk
Definition
Stalk where the stalk holder is first to be payed off in the case of the company closing, but they don't get to vote on company policies.
Term
Selling Short
Definition
The selling of something that the seller doesn't own. i.e. I borrow a stalk for worth $100 at a 10% interest rate. I sell the stalk to someone at that rate, hope the value drops over the next few months, buy it again at hopefully a lower rate, and then return the stalk plus 10 dollars.
Term
Variable Cost
Definition
A cost that changes over time, such as milk, it changes a bit each week.
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