Term
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Definition
| the extent to which competition prevails in particular markets |
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Term
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Definition
| market situation in which there are numerous buyers and sellers, and no single buyer or seller can affect price |
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Term
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Definition
| market situation in which a single supplier makes up an entire industry for a good or service with no close substitutes |
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Term
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Definition
| obstacles to competition that prevent others from entering a market |
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Term
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Definition
| low production costs resulting from the large size of output |
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Term
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Definition
| exclusive right to make, use, or sell an invention for a specified number of years |
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Term
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Definition
| exclusive right to sell, publish, or reproduce creative works for a specified number of years |
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Term
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Definition
| industry dominated by a few suppliers who exercise some control over price |
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Term
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Definition
| manufacturers’ use of minor differences in quality and features to try to differentiate between similar goods and services |
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Term
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Definition
| arrangement among groups of industrial businesses to reduce international competition by controlling the price, production, and distribution of goods |
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Term
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Definition
| market situation in which a large number of sellers offer similar but slightly different products and in which each has some control over price |
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Term
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Definition
| a board of directors, the majority of whose members also serve as the board of directors of a competing corporation |
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Term
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Definition
| federal and state laws passed to prevent new monopolies from forming and to break up those that already exist |
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Term
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Definition
| a combined company that results when one corporation buys more than half the stock of another corporation and, thus, controls the second corporation |
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Term
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Definition
| large corporation made up of smaller corporations dealing in unrelated business |
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Term
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Definition
| reduction of government regulation and control over business activity |
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Term
| National income accounting |
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Definition
| measurement of the national economy’s performance, dealing with the overall economy’s output and income |
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Term
| Gross domestic product (GDP)- |
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Definition
| total dollar value of all final goods and services produced in a nation in a single year |
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Term
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Definition
| difference between what the nation sells to other countries and what it buys from other countries |
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Term
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Definition
| loss of value because of wear and tear to durable goods and capital goods |
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Term
| 5. Net domestic product (NDP) |
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Definition
| value of the nation’s total output (GDP) minus the total value lost through depreciation on equipment |
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Term
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Definition
| total income earned by everyone in the economy |
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Term
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Definition
| total income that individuals receive before personal taxes are paid |
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Term
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Definition
| welfare and other supplementary payments that a state or the federal government makes to individuals |
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Term
| Disposable person income (DI |
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Definition
| income remaining for people to spend or save after all taxes have been paid |
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Term
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Definition
| prolonged rise in the general price level of goods and services |
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Term
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Definition
| the real goods and services that money can buy; determines the value of money |
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Term
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Definition
| prolonged decline in the general price level of goods and services |
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Term
| Consumer price index (CPI) |
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Definition
| measure of the change in price over time of a specific group of goods and services used by the average household |
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Term
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Definition
| representative group of goods and services used to compile the consumer price index |
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Term
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Definition
| year used as a point of comparison for other years in a series of statistics |
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Term
| 16. Producer price index (PP |
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Definition
| measure of the change in price over time that United States producers charge for their goods and services |
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Term
| 16. Producer price index (PP |
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Definition
| measure of the change in price over time that United States producers charge for their goods and services |
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Term
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Definition
| price index that removes the effect of inflation from GDP so that the overall economy in one year can be compared to another year |
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Term
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Definition
| GDP that has been adjusted for inflation by applying the price deflator |
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Term
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Definition
| GDP that has been adjusted for inflation by applying the price deflator |
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Term
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Definition
| summation of all the individual parts in the economy |
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Term
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Definition
| total quantity of goods and services in the entire economy that all citizens will demand at any single time |
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Term
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Definition
| a graphed line showing the relationship between the aggregate quality demanded and the average of all prices as measured by the implicit GDP price deflator |
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Term
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Definition
| real domestic output of producers based on the rise and fall of the price level |
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Term
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Definition
| a graphed line showing the relationship between the aggregate quantity supplied and the average of all prices as measured by the implicit GDP price deflator |
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Term
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Definition
| ups and downs in an economy |
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Term
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Definition
| irregular changes in the level of total output measured by real GDP |
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Term
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Definition
| period of prosperity in a business cycle in which economic activity is at its highest point |
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Term
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Definition
| part of the business cycle during which economic activity is slowing down |
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Term
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Definition
| part of the business cycle in which the nation’s output (real GDP) does not grow for at least six months |
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Term
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Definition
| major slowdown of economic activity |
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Term
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Definition
| lowest part of the business cycle in which the downward spiral of the economy levels off |
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Term
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Definition
| part of the business cycle in which economic activity slowly increases |
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Term
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Definition
| part of the business cycle in which economic activity slowly increases |
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Term
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Definition
| lowest part of the business cycle in which the downward spiral of the economy levels off |
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Term
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Definition
| part of the business cycle in which economic activity slowly increases |
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Term
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Definition
| inventions and new production techniques |
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Term
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Definition
| statistics that measure variables in the economy |
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Term
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Definition
| statistics that point to what will happen in the economy |
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Term
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Definition
| economic indicators that usually change at the same time as changes in overall business activity |
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Term
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Definition
| indicators that seem to lag behind changes in overall business activity |
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Term
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Definition
| anything customarily used as a medium of exchange, a unit of accounting, and a store of value |
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Term
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Definition
| use of money in exchange for goods or services |
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Term
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Definition
| exchange of goods and services for other goods and services |
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Term
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Definition
| exchange of goods and services for other goods and services |
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Term
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Definition
| use of money as a yardstick for comparing the values of goods and services in relation to one another |
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Term
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Definition
| use of money to store purchasing power for later use |
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Term
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Definition
| a medium of exchange such as cattle or gems that has value as a commodity or good aside from its value as money |
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Term
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Definition
| money that is back by an item of value, such as gold or silver |
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Term
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Definition
| money that has value because a government fiat, or order, has established it as acceptable for payment of debts |
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Term
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Definition
| money that by law must be accepted for payment of public and private debts |
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Term
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Definition
| money that by law must be accepted for payment of public and private debts |
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Term
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Definition
| hecking account that allows a customer to write a check for more money than exists in his or her account |
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Term
| Electronic funds transfer (EFT) |
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Definition
| system of putting onto computers all the banking functions that in the past were handled on paper |
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Term
| Electronic funds transfer (EFT) |
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Definition
| system of putting onto computers all the banking functions that in the past were handled on paper |
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Term
| Automated teller machines (ATMs) |
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Definition
| units that allow consumers to do their banking without the help of a teller |
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Term
| Automated teller machines (ATMs) |
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Definition
| units that allow consumers to do their banking without the help of a teller |
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Term
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Definition
| account in which deposited money can be withdrawn at any time by writing a check |
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Term
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Definition
| money deposited in a bank that can be withdrawn at any time by presenting a check |
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Term
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Definition
| mutual savings banks, S&Ls, and credit unions that offer many of the same services as commercial banks |
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Term
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Definition
| evice used to make cashless purchases; money is electronically withdrawn from the consumer’s checkable account and transferred directly to the store’s bank account |
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Term
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Definition
| assets, such as savings accounts, that can be turned into money relatively easily and without the risk of loss of value |
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Term
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Definition
| narrowest definition of the money supply; consists of moneys that can be spent immediately and against which checks can be written |
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Term
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Definition
| broader definition of the money supply; includes all of M1, plus such near moneys as money market mutual fund balances, certificates of deposit, and Eurodollars |
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Term
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Definition
| the Federal Reserve System created by Congress in 1913 as the nation’s central banking organization |
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Term
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Definition
| policy that involves changing the rate of growth of the supply of money in circulation in order to affect the cost and availability of credit |
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Term
| Federal Open Market Committee- |
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Definition
| 12-member committee in the Federal Reserve System that meets 8 times a year to decide the course of action that the Fed should take to control the money supply |
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Term
| Federal Open Market Committee- |
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Definition
| 12-member committee in the Federal Reserve System that meets 8 times a year to decide the course of action that the Fed should take to control the money supply |
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Term
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Definition
| method by which a check that has been deposited in one institution is transferred to the issuer’s depository institution |
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Term
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Definition
| method by which a check that has been deposited in one institution is transferred to the issuer’s depository institution |
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Term
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Definition
| monetary policy that makes credit inexpensive and abundant, possibly leading to inflation |
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Term
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Definition
| monetary policy that makes credit expensive and in short supply in an effort to slow the economy |
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Term
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Definition
| monetary policy that makes credit expensive and in short supply in an effort to slow the economy |
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Term
| Fractional reserve banking- |
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Definition
| system in which only a fraction of the deposits in a bank is kept on hand, or in reserve; the remainder is available to lend |
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Term
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Definition
| regulations set by the Fed requiring banks to keep a certain percentage of their deposits as cash in their own vaults or as deposits in their Federal Reserve district bank |
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Term
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Definition
| regulations set by the Fed requiring banks to keep a certain percentage of their deposits as cash in their own vaults or as deposits in their Federal Reserve district bank |
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Term
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Definition
| interest rate that the Fed charge on loans to member banks |
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Term
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Definition
| interest rate that the Fed charge on loans to member banks |
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Term
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Definition
| rate of interest that banks charge on loans to their best business customers |
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Term
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Definition
| interest rate that banks charge each other on loans (usually overnight) |
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Term
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Definition
| interest rate that banks charge each other on loans (usually overnight) |
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Term
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Definition
| buying and selling of United States securities by the Fed to affect the money supply |
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Term
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Definition
| buying and selling of United States securities by the Fed to affect the money supply |
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Term
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Definition
| publicly used facilities, such as schools and highways, built by federal, state, or local governments with public money |
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Term
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Definition
| government program that provides health care for the aged |
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Term
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Definition
| goods or services that government supplies to its citizens; can be used by many individuals at the same time without reducing the benefit each person receives |
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Term
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Definition
| government activity that takes income from some people through taxation and uses it to help citizens in need |
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Term
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Definition
| government activity that takes income from some people through taxation and uses it to help citizens in need |
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Term
| Social insurance programs |
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Definition
| government programs that pay benefits to retired and disabled workers, their families, and the unemployed |
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Term
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Definition
| federal program that provides monthly payments to people who are retired or unable to work |
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Term
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Definition
| government program that extends payments for medical care to workers injured on the job |
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Term
| Public-assistance programs/welfare |
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Definition
| government programs that make payments to citizens based on need |
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Term
| Public-assistance programs/welfare |
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Definition
| government programs that make payments to citizens based on need |
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Term
| Supplemental Security Income- |
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Definition
| federal programs that include food stamps, veterans’ benefits, and payments to the disabled |
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Term
| 10. Temporary Assistance to Needy Families |
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Definition
| state-run program that provides money to needy single parents |
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Term
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Definition
| state and federal public-assistance program that provides free health care for low- income and disabled persons |
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Term
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Definition
| state and federal public-assistance program that provides free health care for low- income and disabled persons |
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Term
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Definition
| economic side effects or by-products that affect an uninvolved third party; can be negative or positive |
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Term
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Definition
| economic side effects or by-products that affect an uninvolved third party; can be negative or positive |
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Term
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Definition
| year by which accounts are kept; for the federal government, October 1 to September 30 of the next year |
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Term
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Definition
| year by which accounts are kept; for the federal government, October 1 to September 30 of the next year |
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Term
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Definition
| situation when the amount of government spending exceeds its receipts during the fiscal year |
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Term
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Definition
| situation when the amount of government spending exceeds its receipts during the fiscal year |
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Term
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Definition
| government policy of spending more money than it is able to bring in through revenues |
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Term
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Definition
| government policy of spending more money than it is able to bring in through revenues |
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Term
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Definition
| government policy of spending more money than it is able to bring in through revenues |
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Term
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Definition
| total amount of outstanding debt for the federal government |
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Term
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Definition
| situation when the amount of government receipts is larger than its expenditures during the fiscal year |
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Term
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Definition
| situation when the amount of government receipts is larger than its expenditures during the fiscal year |
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Term
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Definition
| received principle- system of taxation in which those who use a particular government service support it with taxes in proportion to the benefit they receive; those who do not use a service do not pay taxes for it |
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Term
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Definition
| received principle- system of taxation in which those who use a particular government service support it with taxes in proportion to the benefit they receive; those who do not use a service do not pay taxes for it |
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Term
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Definition
| principle of taxation in which those with higher incomes pay more taxes than those with lower incomes, regardless of the number of government services they use |
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Term
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Definition
| principle of taxation in which those with higher incomes pay more taxes than those with lower incomes, regardless of the number of government services they use |
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Term
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Definition
| ax that takes the same percentage of all incomes; as income rises, the amount of tax paid also rises |
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Term
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Definition
| ax that takes the same percentage of all incomes; as income rises, the amount of tax paid also rises |
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Term
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Definition
| tax that takes a larger percentage of higher incomes that lower incomes; justified on the basis of the ability-to-pay principle |
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Term
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Definition
| tax that takes a larger percentage of lower incomes than of higher incomes |
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Term
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Definition
| tax that takes a larger percentage of lower incomes than of higher incomes |
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Term
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Definition
| attempts by the federal government to keep the economy healthy; includes monetary and fiscal policies |
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Term
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Definition
| attempts by the federal government to keep the economy healthy; includes monetary and fiscal policies |
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Term
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Definition
| percentage of the civilian labor force that is unemployed but is actively looking for work |
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Term
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Definition
| percentage of the civilian labor force that is unemployed but is actively looking for work |
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Term
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Definition
| condition of the economy when the unemployment rate is lower than a certain percentage established by economists’ studies |
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Term
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Definition
| transactions by people who do not follow federal and state laws with respect to reporting earnings |
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Term
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Definition
| transactions by people who do not follow federal and state laws with respect to reporting earnings |
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Term
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Definition
| theory that prices rise as the result of excessive business and consumer demand; demand increases faster than total supply, resulting in shortages that lead to higher prices |
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Term
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Definition
| combination of inflation and low economic activity |
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Term
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Definition
| combination of inflation and low economic activity |
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Term
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Definition
| theory that higher wages and profits push up prices |
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Term
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Definition
| federal government’s use of taxation and spending policies to affect overall business activity |
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Term
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Definition
| federal government’s use of taxation and spending policies to affect overall business activity |
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Term
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Definition
| economic model that pictures income as flowing continuously between businesses and consumers |
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Term
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Definition
| economic model that pictures income as flowing continuously between businesses and consumers |
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Term
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Definition
| theory that deals with the relationship between the amount of money the Fed places in circulation and the levels of activity in the economy |
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Term
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Definition
| supporters of the theory of monetarism, often linked with Milton Friedman |
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Term
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Definition
| monetarists’ belief that the Fed should allow the money supply to grow at a smooth, consistent rate per year and not use monetary policy to stimulate or slow the economy |
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Term
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Definition
| periods between the time fiscal policy is enacted and the time is becomes effective |
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Term
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Definition
| term used by Karl Marx referring to workers |
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Term
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Definition
| term used by Karl Marx for his ideal society in which no government is necessary |
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Term
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Definition
system that works within the constitutional framework of a nation to system that works within the constitutional framework of a nation to
elect socialists to office; the governments usually controls only some areas of the economy
elect socialists to office; the governments usually controls only some areas of the economy |
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Term
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Definition
system that works within the constitutional framework of a nation to system that works within the constitutional framework of a nation to
elect socialists to office; the governments usually controls only some areas of the economy
elect socialists to office; the governments usually controls only some areas of the economy |
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Term
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Definition
system that supports revolution as a means to overthrow capitalism
and bring about socialist goals; the entire economy is controlled by a central government; also
called communism |
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Term
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Definition
system that supports revolution as a means to overthrow capitalism
and bring about socialist goals; the entire economy is controlled by a central government; also
called communism |
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Term
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Definition
centralized planning system that was the basis for China’s economic system;
eventually was transformed to a regional planning system leading to limited free enterprise |
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Term
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Definition
centralized planning system that was the basis for China’s economic system;
eventually was transformed to a regional planning system leading to limited free enterprise |
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Term
| World Trade Organization (WTO)- |
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Definition
world’s largest trade agreement- currently includes 134
nations |
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Term
| World Trade Organization (WTO)- |
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Definition
world’s largest trade agreement- currently includes 134
nations |
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Term
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Definition
| change from state ownership to business, land, and buildings to private ownership |
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Term
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Definition
| country that has a blend of capitalism and socialism, combining private ownership of the means of production with the goal of social equality for its citizens (Sweden) |
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