Term
|
Definition
| Basic econ problem that results from a combination of limited resources and unlimited wants. |
|
|
Term
|
Definition
| Factors of land, labor, capital, and entrepreneurship used to produce goods and services. |
|
|
Term
|
Definition
| Value of the next best alternative given up for the alternative that was chosen. |
|
|
Term
|
Definition
| Sacrificing one good or service to purchase another |
|
|
Term
|
Definition
| Econ system in which the government minimizes its interference with the economy. |
|
|
Term
| Production Possibilities Curve |
|
Definition
| Graph showing the maximum combinations of goods and service that can be produced from a fixed amount if resources in a given period of time. |
|
|
Term
|
Definition
| WHAT to produce, HOW to produce, for WHOM to produce for? |
|
|
Term
|
Definition
| System in which econ decisions are based on customs and beliefs that have been handed down from generation to generation. |
|
|
Term
|
Definition
| System in which the government controls the factors of production and makes all decisions about their use. |
|
|
Term
|
Definition
| System combining characteristics of more than one type of economy |
|
|
Term
|
Definition
| System in which the government owns the major factors of production and attempts to manage output and the distribution of goods. |
|
|
Term
|
Definition
| Term used by Karl Marx for his idealized society in which no government is necessary. |
|
|
Term
|
Definition
| Desire to make money that motivates people to produce and sell goods and services. |
|
|
Term
|
Definition
| Whatever is owned by individuals rather than by government. |
|
|
Term
|
Definition
| Wise use of available resources so as to obtain the greatest benefits possible. |
|
|
Term
|
Definition
| The attempt to balance an econ policy so that everyone benefits fairly. |
|
|
Term
|
Definition
| Expansion of the economy to produce more goods, jobs, and wealth. |
|
|
Term
|
Definition
| Ensuring that there is an economic benefit both to the region from which the purchase came and to the region in which it is marketed. |
|
|
Term
|
Definition
| The material well-being of an individual, group, or nation, measured by how well their necessities and luxuries are satisfied. |
|
|
Term
|
Definition
| Idealized society in which no government is necessary. |
|
|
Term
|
Definition
| System in which individuals own the factors of production and make econ decisions through free interaction while looking out for their own, and their families' interests. |
|
|
Term
|
Definition
| Period of time at the end of which time deposits will pay a stated rate of interest. |
|
|
Term
|
Definition
| Setting aside income for a period of time so that it can be used later. |
|
|
Term
|
Definition
| To spend money on project/to spend money on something in the hope of a future return or benefit |
|
|
Term
|
Definition
| Time deposits that state the amount of the deposit, maturity, and rate of interest being paid. |
|
|
Term
|
Definition
| Certificates issued by the U.S. Treasury in exchange for a minimum amounts of $1000 and maturing in a few days up to 26 weeks. |
|
|
Term
|
Definition
| Bonds issued by the federal government as a way of borrowing money; they are purchased at half the face value and increase every 6 months until full face value is reached. |
|
|
Term
|
Definition
| Investment company that pools the funds of many individuals to buy stocks, bonds, and other investments. |
|
|
Term
|
Definition
| Econ rule stating that the quantity demand and price move in opposite directions. |
|
|
Term
|
Definition
| The amount if a good or service that a consumer is willing and able to purchase at a specific rate. |
|
|
Term
|
Definition
| Downward-sloping line that shows in graph form the quantities demanded at each possible price. |
|
|
Term
| Law of Diminishing Returns |
|
Definition
| Econ rule stating that as more units of a factor of production are added to other factors of production, after some point total output continues to increase but at a diminishing rate. |
|
|
Term
| Law of Diminishing Marginal Utility |
|
Definition
| Rule stating that the additional satisfaction a consumer gets from purchasing one more unit of a product will lessen with each additional unit purchased. |
|
|
Term
|
Definition
| Equilibrium of the consumer through the law of equi-marginal utility |
|
|
Term
|
Definition
| Situation in which a given rise or fall in a product's price greatly affects the amount of people that are willing to buy. |
|
|
Term
|
Definition
| Situation in which a product's price change has little impact on the quantity demanded by consumers. |
|
|
Term
|
Definition
| Econ rule stating that price and quantity supplied move in the same direction. |
|
|
Term
|
Definition
| Upward-sloping line that shows in graph form the quantities supplied at each possible price. |
|
|
Term
|
Definition
| The distribution of good and services based in something other than price. |
|
|
Term
|
Definition
| 'Underground" or illegal market in which goods are traded at prices above their legal maximum prices or in which illegal goods are sold. |
|
|
Term
|
Definition
| The maximum price at which an item or service can be sold. |
|
|
Term
|
Definition
| The minimum price at which a good or service can be sold. |
|
|
Term
|
Definition
| Situation in which quantity supplied is greater than quantity demanded at the current price. |
|
|
Term
|
Definition
| Situation in which quantity supplied is less than quantity demanded at the current price. |
|
|
Term
|
Definition
| The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. |
|
|
Term
|
Definition
| Total dollar value of all final goods and services produced in a nation in a single year. |
|
|
Term
|
Definition
| Country's income including foreign investments: the total value of all goods and services produced within a country in a year, including net income from investments in other countries |
|
|
Term
|
Definition
| Value of the nation's total output minus the total through deprecation on equipment. |
|
|
Term
| Disposable Personal Income |
|
Definition
| Income remaining for a person to spend after all taxes have been paid. |
|
|
Term
|
Definition
| Total income earned by everyone in the economy. |
|
|
Term
|
Definition
| Welfare and other supplementary payments that a state or the federal government makes to individuals. |
|
|
Term
|
Definition
| Prolonged rise in the general price level of final goods and services. |
|
|
Term
|
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. |
|
|
Term
|
Definition
| Theory that higher wages push up prices. |
|
|
Term
|
Definition
| A statistical measure of the average of prices of a specified set of goods and services purchased by typical consumers in city areas. |
|
|
Term
|
Definition
| Measure of the change in price over the time that U.S. producers charge for their goods and services. |
|
|
Term
|
Definition
| Measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population. It does not attempt to reflect the distribution of income or wealth. |
|
|
Term
|
Definition
| Prolonged decline in the general price level of goods and services. |
|
|
Term
|
Definition
| Part of the business cycle in which the nation's output (real GDP) declines for at least 6 months. |
|
|
Term
|
Definition
| Major slowdown of economic activity. |
|
|
Term
|
Definition
| Irregular changes in the level of total output measured by real GDP. |
|
|
Term
|
Definition
| Period of prosperity in a business cycle in which economic activity is at its highest point. |
|
|
Term
|
Definition
| Lowest part of the business cycle in which the downward spiral of the economy levels off. |
|
|
Term
|
Definition
| Part of the business cycle in which economic activity slowly increases. |
|
|
Term
|
Definition
| Part of the business cycle during which economic activity is slowing down. |
|
|
Term
|
Definition
| Statistics that point to what will happen in the economy. |
|
|
Term
|
Definition
| Indicator that seem to lag behind changes in overall business activity. |
|
|
Term
|
Definition
| Economic indicators that usually change at the same time as changes in overall business activity. |
|
|
Term
|
Definition
| Medium of exchange, unit of account, store value, standard of deferred payment, measure of value |
|
|
Term
|
Definition
| A medium of exchange such as cattle or gems that has a value as a commodity or good aside from its value as money. |
|
|
Term
|
Definition
| Money that is backed by an item such as gold or silver. |
|
|
Term
|
Definition
| Valuing of currency in gold: a system of defining monetary units in terms of their value in gold, usually accompanied by the free circulation of gold and free exchange of currency into it |
|
|
Term
|
Definition
| Narrowest definition of the money supply; consists of moneys that can be spent immediately and against which checks can be written. |
|
|
Term
|
Definition
| Broader definition of the money supply; includes all of M1, plus such near moneys as savings deposits, small-denomination time deposits, money market deposit accounts, and retail money market mutual fund balances. |
|
|
Term
|
Definition
| The central banking system of the United States |
|
|
Term
|
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. |
|
|
Term
|
Definition
| Interest rate that the Fed charges on loans to commercial banks and other depository institutions. |
|
|
Term
|
Definition
| Rate of interest bans charge on loans to their best business customers. |
|
|
Term
|
Definition
| Regulations set by the Fed requiring banks to keep a certain percentage of their checkable deposits in their own vaults or as deposits in their Federal Reserve district bank. |
|
|
Term
|
Definition
| Goods or services that can be used by many individuals at the same time without reducing the benefit each person receives. |
|
|
Term
|
Definition
| Privately owned part of economy: the part of a free market economy that is made up of companies and organizations that are not owned or controlled by the government |
|
|
Term
|
Definition
| Government activity that takes income from some people through taxation and uses it to help citizens in need. |
|
|
Term
|
Definition
| Situation when the amount of government receipts is larger than its expenditures during the fiscal year. |
|
|
Term
|
Definition
| Situation in which the amount of government spending exceeds its receipts during the fiscal year. |
|
|
Term
|
Definition
| Tax that takes the same percentage of all incomes; as income rises, the amount of tax paid also rises. |
|
|
Term
|
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. |
|
|
Term
|
Definition
| System of taxation in which those who use a particular government services support it with taxes in proportion to the benefit they receive; those who do not use a service do not pay taxes for it. |
|
|
Term
|
Definition
| Tax that takes a larger percentage of higher incomes then of lower incomes; justified on the basis of the ability-to-pay principle. |
|
|
Term
|
Definition
| Tax that takes a larger percentage of lower incomes than of higher ones. |
|
|
