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Basic Economic Terms
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30
Economics
12th Grade
08/31/2011

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Term
Per capital GDP
Definition
Nation's GDP divided by the country's population.
Term
GDP
Definition
Gross domestic product, value of goods and services.
Term
Federal Surplus
Definition
Take in more then we spend.
Term
Stock
Definition
Certificate of ownership in a corporation.
Term
Bonds
Definition
Loans, a formal contract to repay borrowed money, with interest.
Term
Mutual funds
Definition
diversity in stock or a bond portfolio
Term
NYSE
Definition
New york stock exchange
Term
NASDAQ
Definition
Computerized trading.
Term
DJIA
Definition
Index to inform people of how the market is doing.
Term
S&P500
Definition
Index of the 500 largest companies.
Term
Deflation
Definition
General decrease in price.
Term
CPI
Definition
Consumer price index.
Term
Unemployment rate
Definition
Percent of people who are actively looking for jobs.
Term
Recession
Definition
Two consecutive quarters of economic decline.
Term
Depression
Definition
Severe recession, usually 18 months. High unemployment and low production.
Term
Interest Rate
Definition
Percent of cost of borrowing money.
Term
Prime rate
Definition
The lowest rate that banks give their valued customers.
Term
Federal reserved bank (the Fed)
Definition
National bank of the us that establishes rates both private and public.
Term
Ben Bernanke
Definition
Head of the fed.
Term
Merger
Definition
Merging of two or more companies.
Term
Import
Definition
Bringing goods into country.
Term
Export
Definition
Taking goods out of the country.
Term
Trade surplus
Definition
Export more then we input.
Term
Trade surplus deficit
Definition
Import more then we export.
Term
Tariff
Definition
Tax on imported goods.
Term
Exchange rate
Definition
value of money in relation to other countries.
Term
NAFTA
Definition
Free trade zone between Mexico, USA, and Canada.
Term
EU
Definition
European union- free trade zone.
Term
WTO
Definition
World trade organization, over-see international trade.
Term
Globalization.
Definition
Idea that the world is a marketplace.
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