Term
|
Definition
| something like air, food, or shelter that is necessary for survival |
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Term
|
Definition
| an item that we desire but that is essential to survival |
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Term
|
Definition
| the study of how people seek to satisfy their needs and wants by making choices |
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Term
|
Definition
| physical objects such as clothes or shoes |
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Term
|
Definition
| actions or activities that one person performs for another |
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Term
|
Definition
| limited quantities of resources to meet unlimited wants |
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Term
|
Definition
| a situation in which a good or service is unavailable |
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Term
|
Definition
| land, labor, and capital; ther three groups of resources that are used to make all goods and services |
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Term
|
Definition
| natural resources that are used to make goods and services |
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Term
|
Definition
| the effort that people devote to a task for which they are paid |
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Term
|
Definition
| any human-made resource that is used to create other goods and services |
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Term
|
Definition
| all human-made goods that are used to produce other goods and services; tools and buildings |
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Term
|
Definition
| the skills and knowledge gained by a worker through education and experience |
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Term
|
Definition
| ambitious leader who combines land, labor, and capital to create and market new goods and services |
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Term
|
Definition
| an alternatice that we sacrifice when we make a decision |
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Term
|
Definition
| a phrase that reffers to the trade-offs that nations face when choosing whether to produce more or less military or consumer goods |
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Term
|
Definition
| the most desirable alternative given up as the result of a decision |
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Term
|
Definition
| deciding whether to do or use one additional unit of some resource |
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Term
| Production Possibilities Curve |
|
Definition
| a graph that shows alternative ways to use an economy's resources |
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Term
| Production Possibilities Frontier |
|
Definition
| the line on a production possibilities graph that shows the maximum possible output |
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Term
|
Definition
| using resources in such a way as to maximize the production of goods and services |
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Term
|
Definition
| using fewer resources than an economy is capable of using |
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Term
|
Definition
| the alternative that is given up because of a decision |
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Term
|
Definition
| law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases |
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Term
|
Definition
| the method used by a society to produce and distribute goods and services |
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Term
|
Definition
| the income people receice for supply factors of production, such as land, labor, or capital |
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Term
|
Definition
| the love of one's country; the passion that inspires a person to serve his or her country |
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Term
|
Definition
| government programs that protect people experiencing unfavorabe economic conditions |
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Term
|
Definition
| level of economic prosperity |
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Term
|
Definition
| economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services |
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Term
|
Definition
| economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets |
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|
Term
| Centrally Planned Economy |
|
Definition
| economic system in which the central government makes all decisions on the production and consumption of oods and serivices |
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Term
|
Definition
| economic system in which a central authority is in command of the economy; a centrally planned economy |
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Term
|
Definition
| market-based economic system with limited government involvement |
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Term
|
Definition
| an arrangement that allows buyers and sellers to exchange |
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Term
|
Definition
| the concentration of te productive efforts of individuals and firms on a limited number of activities |
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Term
|
Definition
| a person or group of people living in the same residence |
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Term
|
Definition
| an organization that uses resources to produce a product, which it then sells |
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Term
|
Definition
| market in which firms purhase the factors of production from households |
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Term
|
Definition
| the financil gain made in a transaction |
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Term
|
Definition
| the market in which households purchase the goods and services that firms produce |
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Term
|
Definition
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Term
|
Definition
| an expectation that encourages people to behave in a certain way |
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Term
|
Definition
| the struggle among producers for the dollars of consumers |
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Term
|
Definition
| term economists use to describe the self-regulating nature of the marketplace |
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Term
|
Definition
| the power of consumers to decide what gets produced |
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Term
|
Definition
| a social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society |
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Term
|
Definition
| a political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government |
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Term
|
Definition
| requiring strict obedience to an authority, such as a dictator |
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Term
|
Definition
| large farm leased from the state to groups of peasant farmers |
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Term
|
Definition
| industry that requires a large capital investment and that produces items used in other industries |
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Term
|
Definition
| the doctrine that states that government generally should not intervene in the marketplace |
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Term
|
Definition
| property owned by individuals or companies, not by the government or the people as a whole |
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Term
|
Definition
| an economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; and dertermined in a free market |
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Term
|
Definition
| a range with no clear divisions |
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Term
|
Definition
| period of change in which an economy moves away from a centrally planned economy toward a market-based system |
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Term
|
Definition
| to sell state-run firms to individuals |
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Term
|
Definition
| the force that encourages people and organizations to inprove their material well-being |
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Term
|
Definition
| the concept that everyone can compete in the marketplace |
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Term
|
Definition
| the concept of giving everyone the same legal rights |
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Term
|
Definition
| the concept that people have the right and privilege to control their possessions as they wish |
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Term
|
Definition
| the concept that people may decide what agreements they want to enter into |
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Term
|
Definition
| the concept that people may decide what and when they want to buy and sell |
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Term
|
Definition
| the rivalry among sellers to attract customers while lowering |
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Term
|
Definition
| a private organization that tries to persuade public officials to act or vote according to group members' interests |
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Term
|
Definition
| laws requiring companies to provide full information about their products |
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Term
|
Definition
| the concerns of the public as a whole |
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Term
|
Definition
| the study of the behavior and decision making of entire economies |
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Term
|
Definition
| the study of the economic behavior and decision making of small units, such as individuals, families, and businesses |
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|
Term
| Gross Domestic Product (GDP) |
|
Definition
| the total value of all final goods and services produced in a paritcual economy |
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Term
|
Definition
| a period of macroeconomic expansion followed by a period of contraction |
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Term
|
Definition
| a commitment to the value of work and purposeful activity |
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Term
|
Definition
| the process used to produce a goods or service |
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Term
|
Definition
| a shared good or service for which it would be impractical to make consumers pay individually |
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Term
|
Definition
| the part of the economy that involves the transactions of the government |
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|
Term
|
Definition
| the part of the economy that involves the transactions of individuals and businesses |
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Term
|
Definition
| Someone who would not choose to pay for a certain good or services, but who would get the benefits of it anyway if it were provided as a public good |
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Term
|
Definition
| a situation in which the market does not distribute resources efficiently |
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|
Term
|
Definition
| an economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume |
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Term
|
Definition
| an income level below that which is needed to support families or households |
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Term
|
Definition
| government aid to the poor |
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|
Term
|
Definition
| direct payments of money to eligible poor people |
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Term
|
Definition
| goods and services provided for free or at greatly reduced prices |
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Term
|
Definition
| the desire to own something and the ability to pay for it |
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Term
|
Definition
| consumers buy more of a good when its price decreases and less when its price increases |
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|
Term
|
Definition
| when consumers react to an increase in a good's price by consuming less o that good and more of other goods |
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Term
|
Definition
| the change in consumption resulting from a change in real income |
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Term
|
Definition
| a table that ists the quantity of a good a person will buy at each different price |
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|
Term
|
Definition
| a table that lists the quantity of a good all consumers in a market will buy at each different price |
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Term
|
Definition
| a graphic representation of a demand schedule |
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|
Term
|
Definition
| a Latin phrase that means "all other things held constant" |
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|
Term
|
Definition
| a good that consumers demand more of when their incomes increase |
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|
Term
|
Definition
| a good that consumers demand less of when their incomes increase |
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|
Term
|
Definition
| two goods that are bought and used together |
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|
Term
|
Definition
| goods used in place of one another |
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|
Term
|
Definition
| a measure of how consumers react to a change in price |
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|
Term
|
Definition
| describes dmand that is not very sensitive to a change in price |
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|
Term
|
Definition
| describes demand that is very sensitive to a change in price |
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|
Term
|
Definition
| describesdemand whose elasticity is exactly equal to 1 |
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|
Term
|
Definition
| the total amount of money a firm receives by selling goods or services |
|
|
Term
|
Definition
| the amount of goods available |
|
|
Term
|
Definition
| tendency of suppliers to offer more of a good at a higher price |
|
|
Term
|
Definition
| the amount a supplier is willing and able to supply at a certain price |
|
|
Term
|
Definition
| a chart that lists how much of a good a supplier will offer at different prices |
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|
Term
|
Definition
|
|
Term
|
Definition
| a chart that lists how much of a good all suppliers will offer at differet prices |
|
|
Term
|
Definition
| a graph of the quantity supplied of a good at different prices |
|
|
Term
|
Definition
| a graph of the quantity supplied of a good by all suppliers at different prices |
|
|
Term
|
Definition
| a measure of the way quantity supplied reacts to a change in price |
|
|
Term
| Marginal Product of Labor |
|
Definition
| the change in output from hiring one additional unit of labor |
|
|
Term
| Increasing Marginal Returns |
|
Definition
| a level of production in which the mrginal product of labor increases as the number of workers increases |
|
|
Term
| Diminishing Marginal Returns |
|
Definition
| a level of production in which the marginal product of labor decreases as the number of workers increases |
|
|
Term
|
Definition
| a cost that does not change, no matter how much of a good is produced |
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|
Term
|
Definition
| a cost that rises or falls depending on how much is produced |
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|
Term
|
Definition
| fixed costs plus variable costs |
|
|
Term
|
Definition
| the cost of producing one more unit of a good |
|
|
Term
|
Definition
| the additional income from selling one more unit of a good; sometimes equal to price |
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|
Term
|
Definition
| the cost of operating a facility, such as a store or factory |
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|
Term
|
Definition
| a government payment that supports a business or market |
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|
Term
|
Definition
| a tax on the production or sale of a good |
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|
Term
|
Definition
| government intervention in a market that affects the production of a good |
|
|
Term
|
Definition
| the point at which quantity demanded and quantity supplied are equal |
|
|
Term
|
Definition
| describes any price or quantity not at equilibrium; when quantity supplied is not equal to quantity demanded |
|
|
Term
|
Definition
| when quantity demanded is more than quanity supplied |
|
|
Term
|
Definition
| when quantity supplied is more than quantity demanded |
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|
Term
|
Definition
| a maximum price that can be egally charged for a good or service |
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|
Term
|
Definition
| a minimum price for a good or service |
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|
Term
|
Definition
| a price ceithing placed on rent |
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|
Term
|
Definition
| a minimum price that an employer can pay a worker for an hour of labor |
|
|
Term
|
Definition
| situation in which quantity supplied is greater than quantity demanded; aka excess supply |
|
|
Term
|
Definition
| situation in which quantity demanded is greater than quantity supplied; aka exess demand |
|
|
Term
|
Definition
| the financial and opportunity costs consumers pay when searching for a good or service |
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|
Term
|
Definition
| a sudden shortage of a good |
|
|
Term
|
Definition
| a system of allocation scarce goods and services using criteria other than price |
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|
Term
|
Definition
| a market in which goods ar sold illegally |
|
|
Term
|
Definition
| costs of production that affect people who have no control over how much of a good is produced |
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|
Term
|
Definition
| a market structure in which a large number of firms all producce the same product |
|
|
Term
|
Definition
| a product that is the same no matter who produces it, such as petroleum, notebook paper, or milk |
|
|
Term
|
Definition
| any factor that makes it difficult for a new firm to enter a market |
|
|
Term
|
Definition
| a market structure that does not meet the conditions of perfect competition |
|
|
Term
|
Definition
| the expenses a firm must pay before it can begin to produce and sel goods |
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|
Term
|
Definition
| a market dominated by a single seller |
|
|
Term
|
Definition
| factors that cause a producer's average cost per unit to fall as output rises |
|
|
Term
|
Definition
| a market that runs most efficiently when one large firm supplies all of the output |
|
|
Term
|
Definition
| a monopoly created by the government |
|
|
Term
|
Definition
| a license that gives the inventor of a new product the exclusive right to sell it for a certain period |
|
|
Term
|
Definition
| the right to sell a good or service withing an exclusive market |
|
|
Term
|
Definition
| a government issued right to operate a business |
|
|
Term
|
Definition
| division of customers into groups based on how much they will pay for a good |
|
|
Term
|
Definition
| the ability of a company to change prices and output like a monopolist |
|
|
Term
|
Definition
| a market structure in which many companies sell products that are similar but not identical |
|
|
Term
|
Definition
| making a product different from other similar products |
|
|
Term
|
Definition
| a way to attract customers through style, service, or location but, not a lower price |
|
|
Term
|
Definition
| a market structure in which a few large firms dominate a market |
|
|
Term
|
Definition
| a series of competitive price cuts that lowers the market price below the cost of production |
|
|
Term
|
Definition
| an agreement among firms to divide the market, set prices, or limit production |
|
|
Term
|
Definition
| an agreement among firms to charge one price for the same good |
|
|
Term
|
Definition
| a formal organization of producers that agree to coordinate prices and production |
|
|
Term
|
Definition
| selling a product below cost to drice competitors out of the market |
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|
Term
|
Definition
| laws that encourage competition in the marketplace |
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|
Term
|
Definition
| an illegal grouping of companies that discourges competition |
|
|
Term
|
Definition
| combination of two or more companies into a single firm |
|
|
Term
|
Definition
| the removal of some government controls over a market |
|
|
Term
|
Definition
| an establishment formed to carry on commercial enterprise |
|
|
Term
|
Definition
| a business owned and managed by a single individual |
|
|
Term
|
Definition
| authorization to start a business issued by the local government |
|
|
Term
|
Definition
| law in a city or town that designates separate areas for residency and for business |
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|
Term
|
Definition
| the legally bound obliationto pay debts |
|
|
Term
|
Definition
| payment other than wages or salaries |
|
|
Term
|
Definition
| a business organization owned by two or more persons who agree on a specific division of responsibilities and profits |
|
|
Term
|
Definition
| partnership in which partners share equally in both responsibility and liability |
|
|
Term
|
Definition
| partnership in which only one partner is required to be a general partner |
|
|
Term
| Limited Liability Partnership |
|
Definition
| partnership in which all partners are limited partners |
|
|
Term
|
Definition
|
|
Term
| Uniform Partnership Act (UPA) |
|
Definition
| act ordering common ownership interests, profit and loss sharing, and shared management responsibilities in a partnership |
|
|
Term
|
Definition
| money and other valuables belonging to an individual or business |
|
|
Term
|
Definition
| a legal entity owned by individual stockholders |
|
|
Term
|
Definition
| a certificate of ownership in a corporation |
|
|
Term
|
Definition
| corporation that issues stock to only a few people, often family members |
|
|
Term
| Publically Held Corporation |
|
Definition
| corporation that sells stock on the open market |
|
|
Term
|
Definition
| a formal contract to repay borrowed money wih interest at fixed intervals |
|
|
Term
| Certificate of Incorporation |
|
Definition
| license to form a corporation issued by state government |
|
|
Term
|
Definition
| the portion of corporate profits paid out to stockholders |
|
|
Term
|
Definition
| the combination of two or more firms competing in the same market with the same good or service |
|
|
Term
|
Definition
| the combination of two or more firms involved in different stages of producing the same good or service |
|
|
Term
|
Definition
| business combination merging more than three businesses that make unreated products |
|
|
Term
| Multinational Corporation (MNC) |
|
Definition
| large corporation that produces and sells its goods and services throughout the world |
|
|
Term
|
Definition
| a semi-independent business that pays fees to a parent company in return for the exclusice right to sell a certain product or service in a given area |
|
|
Term
|
Definition
| share of earnings given as payment |
|
|
Term
|
Definition
| a business organization owned and operated by a group of individuals for their mutual benefit |
|
|
Term
|
Definition
| retail outlet owned and operated by consumers |
|
|
Term
|
Definition
| Cooperative that provides a service, rather than a good |
|
|
Term
|
Definition
| institution that functions much like a business, but does not operate for the purpose of generating profits |
|
|
Term
| Professional Organization |
|
Definition
| nonprofit organization that works to improve the image, working conditions, and skill levels of people in particular occupations |
|
|
Term
|
Definition
| nonprofit organization that promotes collective business interests for a city, state, or other geographical area, or for a group of similar businesses |
|
|
Term
|
Definition
| nonprofit organization that promotes the interests of a particular industry |
|
|
Term
|
Definition
| all nonmiliary people who are employed or unemployed |
|
|
Term
|
Definition
| the theory that education increases productivity and results in higher wages |
|
|
Term
|
Definition
| the theory that the completion of college indicates to employers that a job applicant is intelligent and hard working |
|
|
Term
|
Definition
| a temporary or part-time job |
|
|
Term
|
Definition
| demand that is determined by demand for another good or service |
|
|
Term
|
Definition
| the wage rate that produces neither an excess of supply of workers nor an excess demand for workers in the labor market |
|
|
Term
|
Definition
| labor that requires no specialized skills, education, or training |
|
|
Term
|
Definition
| labor that requires minimal specialized skills and education |
|
|
Term
|
Definition
| labor that requires specialized skills and training |
|
|
Term
|
Definition
| Labor that requires advanced skills and education |
|
|
Term
|
Definition
| an unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men |
|
|
Term
|
Definition
| an organization of workers that tries to improve working conditions, wages, and benefits for its members |
|
|
Term
|
Definition
| the practice of negotiating labor contracts that keep unnecessary workers on a company's payroll |
|
|
Term
|
Definition
|
|
Term
|
Definition
| an organized work stoppage intended to force an employer to address union demands |
|
|
Term
|
Definition
| a measure that bans mandatory union membership |
|
|
Term
|
Definition
| someone who works in an industrial job, often in manufacturing, and who receives wages |
|
|
Term
|
Definition
| someone in a professional or clerical job who usually earns a salary |
|
|
Term
|
Definition
| the process in which union and company representatives meet to negotiate a new labor contract |
|
|
Term
|
Definition
| a settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept |
|
|
Term
|
Definition
| a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides |
|
|
Term
|
Definition
| anythig tht serves as a medium of exchange, a unit of account, and a store of value |
|
|
Term
|
Definition
| anything that is used to determine value during the exchange of goods and services |
|
|
Term
|
Definition
| the direct exchange of one set o goods or services for another |
|
|
Term
|
Definition
| a means for comparing the values of goods and services |
|
|
Term
|
Definition
| something that keeps its value if it is stored rather than used |
|
|
Term
|
Definition
| coins and paper bills used as money |
|
|
Term
|
Definition
| objects that have value in themselves and that are also used as money |
|
|
Term
|
Definition
| Objects that have value because the holder can exchange them for something else of value |
|
|
Term
|
Definition
| money that has value because the government has ordered that it is an acceptable means to pay debts |
|
|
Term
|
Definition
| an institution for receiving, keeping, and lending money |
|
|
Term
|
Definition
| a bank chartered, or licensed, by the national government |
|
|
Term
|
Definition
| widespread panic in which great numbers of people try to redeem their paper money |
|
|
Term
|
Definition
| paper currency issued during the Civil War |
|
|
Term
|
Definition
| a monetary system in which paper money and coins are equal to the value of a certain amount of gold |
|
|
Term
|
Definition
| the nation's central banking system |
|
|
Term
|
Definition
| bank that can lend to other banks in times of need |
|
|
Term
|
Definition
| bank that belongs to the Federal Reserve System |
|
|
Term
|
Definition
| the national currency we use today in the United States |
|
|
Term
|
Definition
| the severe economic decline that began in 1929 and lasted for mor than a decade |
|
|
Term
| Federal Deposit Insurance Corporation (FDIC) |
|
Definition
| the government agency that insures customer deposits if a bank fails |
|
|
Term
|
Definition
| all the money available in the US economy |
|
|
Term
|
Definition
| the ability to be used as, or directly converted to, cash |
|
|
Term
|
Definition
| the money in checking accounts |
|
|
Term
|
Definition
| a fund that pools money from small savers to purchase short-term government and corporate securities |
|
|
Term
| Fractional Reserve Banking |
|
Definition
| a banking system that keeps only a fraction of funds on hand and lends out the remainder |
|
|
Term
|
Definition
| failure to pay back a loan |
|
|
Term
|
Definition
| a specific type of loan that is used to buy real estate |
|
|
Term
|
Definition
| a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services |
|
|
Term
|
Definition
| the price paid for the use of borrowed money |
|
|
Term
|
Definition
| the amount of money borrowed |
|
|
Term
|
Definition
| a card used to withdraw money |
|
|
Term
|
Definition
| person or institution to whom money is owed |
|
|
Term
|
Definition
| the act of redirectig resources from being consumed today so that they may create benefits in the future; the use of assets to earn income or profit |
|
|
Term
|
Definition
| the system that allows the transfer of money between savers and borrowers |
|
|
Term
|
Definition
| claim on the property or income of a borrower |
|
|
Term
|
Definition
| institution that helps channel funds from savers to borrowers |
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Term
|
Definition
| fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets |
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Term
|
Definition
| spreading out investments to reduce risk |
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Term
|
Definition
| a collection of financial assets |
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Term
|
Definition
| an investment report to potential investors |
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Term
|
Definition
| the money an investor receives above and beyond the sum of money initially invested |
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Term
|
Definition
| The interest rate that a bond issuer will pay to a bondholder |
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Term
|
Definition
| the time at which payment to a bondholder is due |
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Term
|
Definition
| low-denomination bond issued by the US government |
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Term
|
Definition
| a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools |
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Term
|
Definition
| a bond that a corporation issues to raise money to expand its business |
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|
Term
| Securities and Exchange Commission |
|
Definition
| an independent agency of the government that regulates financial markets and investment companies |
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Term
|
Definition
| a lower-rated, potentially higher-paying bond |
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Term
|
Definition
| market in which money is lent for periods longer than a year |
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Term
|
Definition
| market in which money is lend for periods less than a year |
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Term
|
Definition
| market for selling financial assets that can only be redeemed by the original holder |
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Term
|
Definition
| market for reselling financial assets |
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Term
|
Definition
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Term
|
Definition
| claims of ownership in corporation |
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Term
|
Definition
| the difference between a higher selling price and a lower purchase price, resulting in financial gain for the seller |
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Term
|
Definition
| the difference between a lower selling price ans a higher purchase price, resulting in a financial loss for the seller |
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Term
|
Definition
| the division of a single share of stock into more than one share |
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Term
|
Definition
| a person who links buyers and sellers of stock |
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Term
|
Definition
| a business that specializes in trading stocks |
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Term
|
Definition
| a market for buying and selling stock |
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|
Term
| OTC market(over the counter) |
|
Definition
| an electronic marketplace for stocks |
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Term
|
Definition
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|
Term
|
Definition
| contracts to buy or sell at a specific date in the future at a price specified today |
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Term
|
Definition
| contracts that give investors the choice to buy or sell stock and other financial assets |
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Term
|
Definition
| the option to buy shares of stock at a specified time in the future |
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|
Term
|
Definition
| the option to sell shares of stock at a specifies time in the future |
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Term
|
Definition
| a steady rise in the stock market over a period of time |
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Term
|
Definition
| a steady drop in the stock market over a period of time |
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Term
|
Definition
| index that shows how certain stocks have traded |
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Term
|
Definition
| index that shows the price changes of 500 different stocks |
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Term
|
Definition
| the collapse of the stock market in 1929 |
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Term
|
Definition
| the practice of making high-risk investments with borrowed money in hopes of getting a big return |
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Term
| National Income Accounting |
|
Definition
| a system that collects macroeconomic statistics on productions, income, investment, and savings |
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Term
|
Definition
| the dollar value of all final goods and services produced within a countries borders |
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Term
|
Definition
| goods used in the production of final goods |
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|
Term
|
Definition
| goods that last for a relatively long time |
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|
Term
|
Definition
| goods that last a short period of time |
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|
Term
|
Definition
| GDP measured in current prices |
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|
Term
|
Definition
| GDP expressed in constant or unchanging prices |
|
|
Term
| Gross National Product (GNP) |
|
Definition
| the annual income earned by US-owned firms and US citizens |
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|
Term
|
Definition
| the loss of the value of capital equipment that results from normal wear and tear |
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|
Term
|
Definition
| the average of all prices in the economy |
|
|
Term
|
Definition
| the total amount of goods and services in the economy available at all possible price levels |
|
|
Term
|
Definition
| the amount of goods an services in the economy that will be purchased at all possible price levels |
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|
Term
|
Definition
| a period of macroeconomic expansion followed by a period of contraction |
|
|
Term
|
Definition
| a period of economic growth as measured by a rise in real GDP |
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|
Term
|
Definition
| a steady long term increase in real GDP |
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|
Term
|
Definition
| the height of an economic expansion, when real GDP stops rising |
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|
Term
|
Definition
| the lowest point in an economic contraction, when real GDP stops falling |
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|
Term
|
Definition
| a prolonged economic contraction |
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|
Term
|
Definition
| a recession that is especially long and severe |
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|
Term
|
Definition
| a decline in real GDP combined with a rise in price level |
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|
Term
|
Definition
| key economic variables that economists use to predict a new phase of a business cycle |
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|
Term
|
Definition
| read GDP divided by the total population |
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|
Term
|
Definition
| process of increasing the amount of capital per worker |
|
|
Term
|
Definition
| income not used for consumption |
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|
Term
|
Definition
| the proportion of disposable income that is saved |
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|
Term
|
Definition
| an increase in effiecency gained by producing more output without using more inputs |
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|
Term
|
Definition
| unemployment that occurs when people take time to find a job |
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|
Term
|
Definition
| unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for the season |
|
|
Term
|
Definition
| unemployment that occurs when workers' skills do not match the jobs that are availble |
|
|
Term
|
Definition
| unemployment that rises during economic downturns and falls when the economy improves |
|
|
Term
|
Definition
| an official count of the population |
|
|
Term
|
Definition
| the percentage of the nation's labor force that is unemployed |
|
|
Term
|
Definition
| the level of employment reached when there is no cyclical unemployment |
|
|
Term
|
Definition
| working at a job for which one is over-qualified, or working part-time when full time is desired |
|
|
Term
|
Definition
| a person who wants a job but has given up looking |
|
|
Term
|
Definition
| a general increase in prices |
|
|
Term
|
Definition
| the ability to purchase goods and services |
|
|
Term
|
Definition
| a measurement that shows how the average price of a standard group of goods changes over time |
|
|
Term
| Consumer Price Index (CPI) |
|
Definition
| a price index determined by measuring the price of a standard group of goods meant to represent the "market basket" of a typical urban consumer |
|
|
Term
|
Definition
| a representative collection of goods and services |
|
|
Term
|
Definition
| the percentage rate of change in price level over time |
|
|
Term
|
Definition
| the rate of inflation excluding the effects of food and energy prices |
|
|
Term
|
Definition
| inflation that is out of control |
|
|
Term
|
Definition
| theory that too much money in the economy causes inflation |
|
|
Term
|
Definition
| theory that inflation occurs when demand for goods and services exceeds existing supplies |
|
|
Term
|
Definition
| theory that inflation occurs when producers raise prices to meet increased costs |
|
|
Term
|
Definition
| the process by which rising wages cause higher prices, and higher prices cause higher wages |
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|
Term
|
Definition
| income that does not increase even when prices go up |
|
|
Term
|
Definition
| a sustained drop in price levels |
|
|
Term
|
Definition
| the income level below which income is insufficient to support a family |
|
|
Term
|
Definition
| the percentage of people who live in households with income below the official poverty line |
|
|
Term
|
Definition
| how the nation's total income is distributed among its population |
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|
Term
|
Definition
| government-issued coupons that recipients exchange for food |
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|
Term
|
Definition
| area where companies can locate free of certain local, state, and federal taxes and restrictions |
|
|
Term
|
Definition
| federal funds given to the states in lump sums |
|
|
Term
|
Definition
| a program requiring work in exchange for temporary assistance |
|
|
Term
|
Definition
| a required payment to a local, state, or national government |
|
|
Term
|
Definition
| income received by a government from taxes and non-tax sources |
|
|
Term
|
Definition
| income, property, good, or service that is subject to a tax |
|
|
Term
|
Definition
| a tax on a person's earnings |
|
|
Term
|
Definition
| a tax on the dollar value of a good or service being sold |
|
|
Term
|
Definition
| a tax on the value of a property |
|
|
Term
|
Definition
| a tax on the value of a company's profits |
|
|
Term
|
Definition
| a tax for which the percentage of income paid in taxes remains the same for all income levels |
|
|
Term
|
Definition
| a tax for which the percentage of income paid in taxes increases as income increases |
|
|
Term
|
Definition
| a tax for which the percentage of income paid in taxes decreases as income increases |
|
|
Term
|
Definition
| the final burden of a tax |
|
|
Term
|
Definition
| taking tax payments out of an employee's pay before he or she receives it |
|
|
Term
|
Definition
| form used to file income taxes |
|
|
Term
|
Definition
| income on which tax must be paid; total income minus exemptions and deductions |
|
|
Term
|
Definition
| set amount that you subtract from your gross income for yourself, your spouse, and any dependents |
|
|
Term
|
Definition
| Variable amounts that you can subtract, or deduct, from your gross income |
|
|
Term
|
Definition
| taxes that fund Social Security and Medicare |
|
|
Term
|
Definition
| Old-Age, Survivors, and Disability Insurance |
|
|
Term
|
Definition
| a national health insurance program that helps pay for health care for people over age 65 or with certain disabilities |
|
|
Term
|
Definition
| a tax on the estate, or total value of the money and property, of a person who has died |
|
|
Term
|
Definition
| a taxon money or property that one living person gives to another |
|
|
Term
|
Definition
|
|
Term
|
Definition
| the use of taxation to encourage or discourage certain behavior |
|
|
Term
|
Definition
| spending on certain programs that is mandated, or required, by existing law |
|
|
Term
|
Definition
| spending catergory about which government planners can make choices |
|
|
Term
|
Definition
| social welfare program that people are "entitled to"if they meet certain eligibility requirements |
|
|
Term
|
Definition
| entitlement program the benefits low-income families, some people with disabilities, and elderly people in nursing homes |
|
|
Term
|
Definition
| budget for day-to-day expenses |
|
|
Term
|
Definition
| budget for major capital, or investment, expenditures |
|
|
Term
|
Definition
| budget in which revenues are equal to spending |
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|
Term
|
Definition
|
|
Term
|
Definition
| physical property such as land and buildings |
|
|
Term
|
Definition
| possessions such as jewelry, furniture, and boats |
|
|
Term
|
Definition
| an official who determines the values of a property |
|
|
Term
|
Definition
| the use of government spending and revenue collection to influence the economy |
|
|
Term
|
Definition
| a plan for the federal government's revenues and spending for the coming year |
|
|
Term
|
Definition
| a twelve-month period that can begin on any date |
|
|
Term
| Office of Management and Budget OMB |
|
Definition
| government office that manages the federal budget |
|
|
Term
Congressional Budget Office
CBO |
|
Definition
| government agency that provides economic data to Congress |
|
|
Term
|
Definition
| a bill that sets money aside for specific spending |
|
|
Term
|
Definition
| fiscal policies, like higher spending and tax cuts, that encourage economic growth |
|
|
Term
|
Definition
| fiscal policies, like lower spending and higher taxes, that reduce economic growth |
|
|
Term
|
Definition
| the idea that free markets can regulate themselves |
|
|
Term
|
Definition
| the maximum output that an economy can produce without big increases in inflation |
|
|
Term
|
Definition
| the idea that government spending and tax cuts help an economy by raising demand |
|
|
Term
|
Definition
| a form of demand-side economics that encourages government action to increase or decrease demand and outpur |
|
|
Term
|
Definition
| the idea that every one dollar of government spending creates more than one dollar in economic activity |
|
|
Term
|
Definition
| a government program that changes automatically depending on GDP and a person's income |
|
|
Term
|
Definition
| a school of economics that believes tax cuts can help an economy by raising supply |
|
|
Term
| Council of Economic Advisers (CEA) |
|
Definition
| a group of three respected economist that advise the President on economic policy |
|
|
Term
|
Definition
| a budget in which revenues are equal to spending |
|
|
Term
|
Definition
| a situation in which the government takes in more than it spends |
|
|
Term
|
Definition
| a situation in which the government spends more than it takes in |
|
|
Term
|
Definition
|
|
Term
|
Definition
| a government bond that is repaid within three months to a year |
|
|
Term
|
Definition
| a government bond that is repaid within two to ten years |
|
|
Term
|
Definition
| a government bond that can be issued for as long as 30 years |
|
|
Term
|
Definition
| all the money the federal government owes to bond holders |
|
|
Term
|
Definition
| the loss of funds for private investment due to government borrowing |
|
|
Term
|
Definition
| the seven-member board that oversees the Federal Reserve System |
|
|
Term
|
Definition
| the actions the Federal Reserve takes to influence the level of real GDP and the rate of inflation in the economy |
|
|
Term
| Federal Reserve Districts |
|
Definition
| the twelve banking districts created by the Federal Reserve Act |
|
|
Term
| Federal Advisory Council (FAC) |
|
Definition
| the research arm of the Federal Reserve |
|
|
Term
| Federal Open Market Committee (FOMC) |
|
Definition
| Federal Reserve committee that makes key decisions about interest rates and the growth of the US money supply |
|
|
Term
|
Definition
| the process by which banks record whose account gives up money and whose account receives money when a customer writes a check |
|
|
Term
|
Definition
| a company that owns more than one banks |
|
|
Term
|
Definition
| interest rate banks charge each other for loans |
|
|
Term
|
Definition
| rate the Federal Reserve charges for loans to commercial banks |
|
|
Term
|
Definition
| total assets minus total liabilities |
|
|
Term
|
Definition
| process by which money enters into circulation |
|
|
Term
| Required Reserve Ratio (RRR) |
|
Definition
| ratio of reserves to deposits required of banks by the Federal Reserve |
|
|
Term
|
Definition
| amount of new money that will be created with each demand deposit, calculated as 1/RRR |
|
|
Term
|
Definition
| reserves greater than the required amounts |
|
|
Term
|
Definition
| rate of interest banks charge on short-term loans to their best customers |
|
|
Term
|
Definition
| the buying and selling of government securities to alter the supply of money |
|
|
Term
|
Definition
| the belief that the money supply is the most important factor in macroeconomic performance |
|
|
Term
|
Definition
| monetary policy that increases the money supply |
|
|
Term
|
Definition
| monetary policy that reduces the money supply |
|
|
Term
|
Definition
| delay in implementing monetary policy |
|
|
Term
|
Definition
| the time it takes for monetary policy to have an effect |
|
|
Term
|
Definition
| the ability to produce more of a given product using a given amount of resources |
|
|
Term
|
Definition
| the ability to produce a product most efficiently given all the other products that could be produced |
|
|
Term
| Law of Comparative Advantage |
|
Definition
| the idea the nation is better off when it produces goods and services for which it has a comparative advantage |
|
|
Term
|
Definition
| a good that is sent to another country for sale |
|
|
Term
|
Definition
| a good that is brought in from another country for sale |
|
|
Term
|
Definition
| a means of preventing a foreign product or service from freely entering nation's territory |
|
|
Term
|
Definition
| a limit on the amount of good that can be imported |
|
|
Term
| Voluntary Export Restraint (VER) |
|
Definition
| a self-imposed limitation on the number of products shipped to a particular country |
|
|
Term
|
Definition
| a tax on certain items purchased abroad |
|
|
Term
|
Definition
|
|
Term
|
Definition
| a cycle of increasing trade restrictions |
|
|
Term
|
Definition
| the use of trade barriers to protect a nation's industries from foreign competition |
|
|
Term
|
Definition
|
|
Term
| International Free Trade Agreement |
|
Definition
| agreement that results from cooperation between at least two countries to reduce trade barriers and tariffs and to trade with each other |
|
|
Term
| World Trade Organization (WTO) |
|
Definition
| a worldwide organization whose goal is freer global trade and lower tariffs |
|
|
Term
|
Definition
| a regional trade organization made up of European nations |
|
|
Term
|
Definition
| a single currency that replace individual currencies among members of the EU |
|
|
Term
|
Definition
| a region where a group of countries agrees to reduce or eliminate trade barriers |
|
|
Term
|
Definition
| agreement that will eliminate all tariffs and other trade barriers between Canada, Mexico, and the US |
|
|
Term
|
Definition
| the value of a foreign nation's currency in terms of the home nation's currency |
|
|
Term
|
Definition
| an increase in the value of a currency |
|
|
Term
|
Definition
| a decrease in the value of a currency |
|
|
Term
|
Definition
| the banks and other financial institutions that facilitate the buying and selling of foreign currencies |
|
|
Term
|
Definition
| a currency system in which governments try to keep the values of their currencies constant against one another |
|
|
Term
| Flexible exchange-rate system |
|
Definition
| a currency system that allows the exchange rate to be determined by supply and demand |
|
|
Term
|
Definition
| the result of a nation exporting more than its imports |
|
|
Term
|
Definition
| the result of a nation importing more than its exports |
|
|
Term
|
Definition
| the relationship between a nation's imports and its exports |
|
|
Term
|
Definition
| the process by which a nation improves the economic, political. and social well-being of its people |
|
|
Term
|
Definition
| nation with a higher average level of material well-being |
|
|
Term
|
Definition
| nation with a low level of material well-being |
|
|
Term
|
Definition
| a nation's GDP divided by its total population |
|
|
Term
|
Definition
| the extensive organization of an economy for the purpose of manufacture |
|
|
Term
|
Definition
| level of farming in which a person raises only enough food to feed his or her family |
|
|
Term
|
Definition
| the proportion of the population over age 15 that can read and write |
|
|
Term
|
Definition
| the average expected life span of an individual |
|
|
Term
|
Definition
| the number of deaths that occur in the first yer of live per 1,000 live births |
|
|
Term
|
Definition
| the services and facilities necessary for an economy to function |
|
|
Term
| Newly Industrialized Country (NIC) |
|
Definition
| less developed country that has shown significant improvement in the measures of development |
|
|
Term
|
Definition
| the increase in a country's population in a given year, expressed as a percentage of the population figure at the start of the year |
|
|
Term
| Natural Rate of Population Increase |
|
Definition
| the difference between the birth rate and the death rate |
|
|
Term
|
Definition
| suitable for producing crops |
|
|
Term
|
Definition
|
|
Term
|
Definition
| financing derived from the savings of a country's citizens |
|
|
Term
|
Definition
| investment originating from other countries |
|
|
Term
| Foreign Direct Investment (FDI) |
|
Definition
| the establishment of an enterprise by a foreigner |
|
|
Term
| Foreign Portfolio Investment |
|
Definition
| the entry of funds into a country when foreigners make purchases in the country's stock and bond markets |
|
|
Term
|
Definition
| the largest provider of development assistance |
|
|
Term
| United Nations Development Program (UNDP) |
|
Definition
| UN program dedicated to elimination of poverty through development |
|
|
Term
| International Monetary Fund (IMF) |
|
Definition
| organization formed to stabilize international exchange rates and facilitate development |
|
|
Term
|
Definition
| lengthening the time of debt repayment and forgiving, or dismissing, part of the loan |
|
|
Term
|
Definition
| an agreement between a debtor nation and the IMF in which the nation agrees to revise its economic policy |
|
|
Term
|
Definition
| the sale or transfer of state-owned businesses to individuals |
|
|
Term
|
Definition
| system of values that gives central importance to work |
|
|
Term
|
Definition
| a policy of political "openness" introduced into the USSR in the late 1980s |
|
|
Term
|
Definition
| USSR leader Gorbachev's plan for economic restructuring |
|
|
Term
|
Definition
| the production of small consumer goods |
|
|
Term
|
Definition
| designated regions in China where foreign investment is encouraged, businesses can make most of their own investment and production decision, and foreign companies are allowed to operate |
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