Term
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Definition
| one of the basic economic problems - arises because society does not have enough resources to produce all things people would like to have. |
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Term
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Definition
| There is no such thing as a free lunch - even if you get something for free it cost someone somewhere - to produce it, or in increased prices to cover the freebe... |
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Term
| 3 basic economic questions every society must face: |
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Definition
| WHAT to produce, HOW to produce and for WHOM to produce |
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Term
| What are the 4 factors of production required to produce the things that people use? |
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Definition
| Land, Labor, Capital and Entrepreneurs |
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Term
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Definition
| The tools, equipment and factories used to produce goods and services. |
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Term
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Definition
| NEED - basic requirement for survival (food, clothing, shelter) WANT - way of expressing a need ( to satify a NEED for food, a person may WANT pizza) |
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Term
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Definition
| most comprehensive measure of a country's total output - key measure of country's economic health - calculated by adding the dollar value of all final goods and services produced within a country's border in a year |
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Term
| 4 key elements of economics |
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Definition
| Description, analysis, explanation, prediction |
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Term
| Define what an economic product is. |
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Definition
| goods and services that are relatively scarce, useful, and transferrable to others. |
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Term
| Comsumer good (vs. capital good) |
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Definition
| A consumer good is intended for final use by individuals whereas a capital good is a manufactured good used to produce other goods and services (ex. and oven in a bakery - what is the oven? What is the cake? |
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Term
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Definition
| a good is something tangable (can be touched) whereas a service is intangable - work that is performed for someone such as seeing a doctor, or getting a haircut. |
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Term
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Definition
| person who uses goods and services to satisfy wants and needs |
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Term
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Definition
| worth that can be measured in dollars and cents - must be scarce and have utility |
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Term
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Definition
| explains how some necessities, such as water, have little monetary value whereas some non-necessities, such as diamonds, have a much higher value. Water is in plentiful supply in most places and diamonds are much more rare. |
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Term
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Definition
| the capacity to be useful and provide satisfaction - varies for different people. think of water and diamonds |
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Term
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Definition
| accumulation of of those products that are tangible, scarce, useful, and transferable. doesn't include services because they are intangible. |
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Term
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Definition
| Location or other mechanism (internet) that allows buyers and sellers to exchange economic products |
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Term
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Definition
| where productive resources are bought and sold - where people sell thier labor for wages, pay rent, borrow money... |
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Term
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Definition
| where producers sell thier goods and services to consumers |
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Term
| Circular Flow of Economic Activity |
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Definition
| Where Money received by individuals from businesses in the factor market, returns to businesses in the product markets, and businesses use this money to produce more goods and services... |
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Term
| When does economic growth occur? |
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Definition
| when a nations total output of goods and services increases over time causing the circular flow to get bigger, mainly due to increased productivity |
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Term
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Definition
| a measure of the amount of output produced by a given amount of inputs in a specific period of time |
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Term
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Definition
| a business owned by one person - unlimited liability |
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Term
|
Definition
| a business owned by two or more person - unlimited liability |
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Term
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Definition
| when work is arranges so that individual workers do fewer tasks than before and results in increased productivity - ex: assembly line |
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Term
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Definition
| when factors of production perform tasks they can do relatively more efficiently than others. |
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Term
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Definition
| sum of the skills, abilities, health and motivation of a people |
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Term
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Definition
| the desire, ability and willingness to buy a product |
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Term
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Definition
| amount of a product that would be offered for sale at all possible prices that could prevail in the market |
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Term
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Definition
| the principle that suppliers will normally offer more for sale at high prices and less at lower prices |
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Term
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Definition
| a graph showing the various quantities supplied at each and every price that might prevail in the market. |
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Term
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Definition
| the area of economics that deasl with behavior and decision making by small units, such as individual firms. |
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Term
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Definition
| the supply curve that shows the quantities offered at various prices by all firms that offer the prduct for sale in a given market |
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Term
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Definition
| a relatively high tax designed to raise revenue and reduce consumption of a socially undesireable product |
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Term
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Definition
| to rely on others and have other rely on us to provide the goods and services that we consume - events in one part of the country or even world can have a dramtic impact elsewhere - dpression in US affects rest of world... |
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Term
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Definition
| the amount that producers bring to market at any given price |
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Term
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Definition
| a lsiting that shows various quanitities demanded of a particular product at all prices |
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Term
| change in quantity supplied |
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Definition
| the change in amount offered for sale in response to a change in price |
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Term
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Definition
| a situation where suppliers offer different amounts of products for sale at all possible prices in the market |
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Term
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Definition
| the graph that shows the quanitity demanded at each and every price that might prevail int he market |
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Term
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Definition
| government payment to an individual, business, or other group to encourage or protect a certain type of economic activity |
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Term
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Definition
| Or the final berdon of a tax can be predicted with the help of supply and demand analysis. |
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Term
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Definition
| a measure of the way in which quantity supplied responds to a change in price |
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Term
|
Definition
| relationship between the factors of production and the output of goods and services |
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Term
|
Definition
| the quantity demanded for goods or service varies inversely with its price . if the price goes up, quantity of demand goes down. |
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Term
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Definition
| period of production that allows producers to change only the amount of the variable input called labor |
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Term
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Definition
| a period of production long enough for producers to adjust the quantities of all their resources, including capital |
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Term
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Definition
| the demand curve thats shows the quantities demanded by everyone who is interested in purchasing the product |
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Term
| Law of Variable Proportions |
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Definition
| in the short run, output will change as one input is varied while the others are held constant |
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Term
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Definition
That the firm legally ceases to exist when the owner dies, quits, or sells the business. |
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Term
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Definition
| exceptions or oversights in the tax law that allow some people and businesses to avoid paying taxes. |
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Term
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Definition
| Is a business jointly owned by two or more persons. |
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Term
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Definition
| the extra usefulness or satisfaction a person gets from acquiring or using one more unit of a product |
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Term
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Definition
| a concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant |
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Term
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Definition
| the extra usefulness or satisfaction a person gets from acquiring or using one more unit of a product |
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Term
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Definition
| the tax on peoples earnings |
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Term
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Definition
| unprocessed natural products used in production |
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Term
|
Definition
| extra output or change in total product caused by the addition of one more unit of variable input |
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Term
| diminishing marginal utility |
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Definition
| principle which states that the extra satisfaction we get from using additional quanitites of the product begins to diminish |
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Term
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Definition
| a general tax levied on most consumer purchases |
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Term
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Definition
| increasing returns, diminishing returns, and negative returns |
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Term
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Definition
| the stage where output increases at a diminishing rate as more units of a variable input are added |
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Term
| change in quanity demanded |
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Definition
| a movement along the demand curve that shows a change in quantity of the product purchased in response to a change in price |
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Term
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Definition
| the cost that a business incur even if the plant is idle and output is zero |
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Term
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Definition
| the change in quanity demanded because of a change in price that alters consumer' real income |
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Term
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Definition
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Term
|
Definition
| a cost that changes when the business rate of operation or output changes |
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Term
| benefit principle of taxation |
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Definition
| those who benefit from government goods and services should pay in proportion to the amount of benefits they receive. |
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Term
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Definition
| the change in quantity demanded because of the change in the relative price of the product |
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Term
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Definition
| is the sum of the fixed and variable costs |
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Term
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Definition
| extra cost incurred when a business produces one additional unit of a product. |
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Term
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Definition
| electronic business or exchange conducted over the Internet |
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Term
|
Definition
| number of units sold multiplied by the average price per unit |
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Term
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Definition
| the extra revenue associated with the production and sale of one additional unit of output |
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Term
|
Definition
| a shift on the demand durve |
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Term
|
Definition
| type of cost-benefit to the extra costs of an action |
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Term
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Definition
| products used to replace other products |
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Term
|
Definition
| total output or total product the business needs to sell in order to cover its total costs |
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Term
| Profit-maximizing quantity of output |
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Definition
| reached when marginal cost and marginal revenue are equal |
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Term
| ability-to-pay principle of taxation |
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Definition
| the belief that people should be taxed according to their ability to pay, regardless of the benefits they recieve. |
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Term
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Definition
| a measure of responsiveness that tells us how a dependent variable such as quanitity responds to a change in an independent variable such as price. |
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Term
|
Definition
| the monetary value of a product as established by supply and demand |
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Term
|
Definition
| imposes the same percentage rate of taxation on everyone, regardless of income. |
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Term
|
Definition
| the extent to which a change in price causes a change in the quantity demanded |
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Term
|
Definition
| system under which an agency such as government decides everyone's "fair" share |
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Term
|
Definition
| a ticket or a recepit that entitles the holder to obtain a certain amount of a product |
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Term
|
Definition
| a partial refund of the original price of the product |
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Term
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Definition
| a given change in price causes a relatively larger change in quantity demanded |
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Term
|
Definition
| total taxable income divided by the total income |
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Term
|
Definition
| a set of assumptions that can be listed in a table |
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Term
|
Definition
| a given change in price causes a relatively smaller change in quantity demanded |
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Term
|
Definition
| a situation in which prices are relatively stable, and the quantity of goods or services supplied is equal to the quantity demanded. |
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Term
|
Definition
| a given change in price causes a proportional change in quantity demanded |
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Term
|
Definition
| a situation in which the quantity supplied is greater than the quantity demanded at a given price |
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Term
|
Definition
| a tax that imposes a higher percentage rate of taxation on persons with higher incomes. |
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Term
|
Definition
| situation in which the quantity demanded is greater than the quantity supplied at a given price |
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Term
|
Definition
| price that "clears the market" by leaving neither a surplus nor a shortage at the end of the trading period |
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Term
|
Definition
| a maximum legal price that can be charged for a product |
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Term
|
Definition
| Gross Domestic Product-the dollar amount of all final goods and services produced within the country's national borders in a year |
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Term
|
Definition
| the tax rate that applies to the next dollar of taxable income, that increases as the amount of taxable income increases. |
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Term
|
Definition
| the lowest legal wage that can be paid to most workers |
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Term
|
Definition
| lowest legal price that can be apid for a good or service |
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Term
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Definition
| essentially a price floor for farm markets |
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Term
|
Definition
| is a tax that imposes a higher percentage on low incomes than on high incomes. |
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Term
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Definition
| loan that carries neither a penalty nor further obligation to repay if not paid back |
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Term
| national income accounting |
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Definition
| a system and accounts that keeps track of production, consumption, saving, and investment |
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Term
|
Definition
| loan that carries neither a penalty nor further obligation to repay if not paid back |
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Term
|
Definition
| products used to make other productsalready counted in GDP |
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Term
|
Definition
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Term
| Intergovernmental revenue |
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Definition
| funds collected by one level of government that are distributed to another level of government for expenditures |
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Term
|
Definition
| transactions that don't take place in the market |
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Term
|
Definition
| a tax on tangible and intangible possessions such as real estate, building,s furniture, automobiles, farm animals, stocks, bonds, and bank accounts |
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Term
|
Definition
| the person who assigns value to property for tax purposes |
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Term
| payroll withholding system |
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Definition
| a system that requires an employer to automatically deduct income taxes from an employee's paycheck and send it directly to the government. |
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Term
|
Definition
| unreported legal and illgal activites like gambling, smuggling, drugs and counterfeiting |
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Term
| payroll witholding statement |
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Definition
| the summary statement attached to a paycheck that summarizes income, tax witholdings, and other deductions |
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Term
| payroll witholding statement |
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Definition
| the summary statement attached to a paycheck that summarizes income, tax witholdings, and other deductions |
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Term
|
Definition
| larger than normal depreciation charges which allowed firms to reduce federal income tax payments |
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Term
|
Definition
| Gross National Product- the dollar value of all fuinal goods, services, and structures produced in one year with labor and property supplied by a country's residents. |
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Term
|
Definition
| a reduction in business taxes that are tied to investment in new plants and equipment |
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Term
| Internal Revenue Service(IRS) |
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Definition
| the branch of the U.S. treasury department in charge of collecting taxes. |
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Term
|
Definition
| additional tax above and beyond the base rate |
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Term
|
Definition
| net national product-second measure of GNP. less depreciation |
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Term
|
Definition
| the personal income rate that applies whenever the amount of taxes paid falls below some designated level |
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Term
|
Definition
| an annual report to the IRS summaqrizing total income. |
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Term
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Definition
| profits from the sale of an asset held for 12 months |
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Term
|
Definition
| national income- third measure of GNP. the income that's left after all taxes except the coprorate profits tax are subtracted from NNP |
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Term
|
Definition
| a tax placed on the value that manufacturers add at each stage of production |
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Term
|
Definition
| personal income-fourth measure of GNP.l the total amount of income going to consumers before individual income taxes are subtracted |
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Term
|
Definition
| a proportional tax on individual income after a specified threshold has been reached |
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Term
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Definition
| disposable psersonal income- fifth and smallest measure of GNP. the total income the consumer sector has at its disposal after personal income taxes |
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Term
|
Definition
| an upward revision of the tax brackets to keep workers from paying more in taxes because of inflation. |
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Term
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Definition
| all persons who occupy a house, apartment, or room that constitutes separate living quaters |
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Term
|
Definition
| a person who lives alone even though he or she may have family living elsewhere |
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Term
|
Definition
| is the Federal Insurance Contributions Act tax levied on both employers and employees to pay for Social Sercurity and medicare. |
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Term
|
Definition
| a group of two or more persons related by blood, marriage ro adoption who are living together in a household |
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Term
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Definition
| a federal heath-care program available to all senior citizens, regardless of income. |
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Term
|
Definition
| macroeconomic model used to show aggregate demand by the consumer, investment, government, and foreign sectors. |
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Term
| net exports of goods and services |
|
Definition
| a term that refers to the difference between the US exports and its imports |
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Term
|
Definition
| a rise in the general price level |
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Term
|
Definition
| a staticstical series that can be used to measure changes in prices over time |
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Term
|
Definition
| an official count of all people, including their place of residence |
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Term
|
Definition
| s.s.tax and medicare are also called payroll taxes. |
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Term
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Definition
| a year that serves as a basis of comparison for all other years |
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Term
|
Definition
| people living in incorporated villages or towns with 2,500 or more inhabitants |
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Term
|
Definition
| a representative selection of commonly purchased goods and services |
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Term
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Definition
| makes up the remainder of the total population, including those persons who live in sparsely populated areas along the fringes of cities |
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Term
|
Definition
| the point where the country would balance if it could be alid flat and all the people weighed the same |
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Term
|
Definition
| the tax a corporation pays on its profits. |
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Term
|
Definition
| consumer price index- reports on price changes for about 80,000 items in 364 categories |
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Term
|
Definition
| people who study growth, density, and otehr characterisstics of population |
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Term
|
Definition
| is the number of births that 1,00 women are expected to undergo in their lifetime |
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Term
|
Definition
| the average remaining life span of people who reach a given age |
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Term
|
Definition
| measures price changes paid by domestic producers for their inputs |
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Term
|
Definition
| the net change in population caused by people moving into and out of the country |
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Term
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Definition
| a tax on the manufacture or sale of selescted items such as gasoline and liquor- it is the fourth largest source of government revenue |
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Term
| implicit GDP price deflator |
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Definition
| an index of average levels of rpices for all goods and services in the economy |
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Term
|
Definition
| the high birth rate years from 1946 to 1964 |
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Term
|
Definition
| a type of bar graph that shows the breakdown of population by age and gender |
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Term
|
Definition
| when the GDP is not adjusted to remove the effects of inflation |
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Term
|
Definition
| a ratio based on the number of children and elderly for every 100 persons in the working-age bracket of 18 through 64. |
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Term
|
Definition
| if the demand grows faster than income when income grows |
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Term
|
Definition
| or GDP in constant dollars. when the distortions of inflation have been removed |
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Term
|
Definition
| thedollar amount5 of real GDP produced on a per person basis |
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Term
|
Definition
| a table that shows annual compound rates of growth between selected periods of time |
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Term
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Definition
| the quality of lifebased on the possession of necessities and luxuries that make life easier. |
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Term
|
Definition
| resources that can be replenished for future use. |
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Term
|
Definition
| aq tax on donations of money or wealth and is paid by the person who makes the gift. |
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Term
|
Definition
| the total capital stock divided by the number of workers in the labor force |
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Term
|
Definition
| the amount of ouput produced per unit of labor input |
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Term
|
Definition
| is a charge levied on goods brought in from other countries. |
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Term
|
Definition
| charges levied for the use of a good or service |
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Term
|
Definition
| largely systematic ups and downs of real GDP |
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Term
|
Definition
| the rise and fall of real GDP over time in a nonsystematic manner |
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Term
|
Definition
| a period during which real GDP declines for two quarters in a row, or six consecutive months |
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Term
|
Definition
| the point where real GDP stops going up |
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Term
|
Definition
| the turnaround point where real GDP stops going down |
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Term
|
Definition
| a period of recovery from a recession |
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Term
|
Definition
|
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Term
|
Definition
| a state of the economy with large numbers of people out of work, acute shortages, and excess capacity in manufacturing plants |
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Term
|
Definition
| currency issued by towns, chambers of commerce, and other civic bodies during the Great Depression of the 1930s |
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Term
|
Definition
| a macroeconomic model that uses algebraic equations to describe how the economy behaves |
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Term
| index of leading indicators |
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Definition
| a monthly statistical series that usually turns down before real GDP turns down, and turns up before real GDP turns up |
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Term
|
Definition
| people available for work who made a specific effort to find a job during the past month and who, during the most recent survey week, worked less than one hour for pay or profit |
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Term
|
Definition
| the number of unemployed individuals divided by the total number of persons in the civilian labor force |
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Term
|
Definition
| unemployment caused by workers who are between jobs for one reason or another |
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Term
|
Definition
| unemployment that occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills |
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Term
|
Definition
| unemployment directly related to swings in the business cycle |
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Term
|
Definition
| unemployment resulting from changes in the weather or changes in the demand for certain products |
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|
Term
| technological unemployment |
|
Definition
| unemployment caused when workers with less skills, talent, or education are replaced by machines and other equipment that do their jobs |
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Term
|
Definition
| production with mechanical ot other processes that reduce the need for workers |
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Term
|
Definition
| the relative magnitude of prices at one point in time |
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Term
|
Definition
| a decrease in the general price level |
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Term
|
Definition
| inflation in the range of 1 to 3 percent per year |
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Term
|
Definition
| a more intense form of inflation that can go as high as 100 to 300 percent |
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Term
|
Definition
| inflation in the range of 500 percent a year and above |
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Term
|
Definition
| a curve that shows how much the actual distribution of income varies from an equal distribution |
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Term
|
Definition
| annual dollar amounts used to evaluate the money income that families and unrelated individuals receive |
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Term
|
Definition
| economis and social programs that provide regular assistance from the government or private agencies because of need |
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Term
|
Definition
| government-issued coupons that can be redeemed for food |
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|
Term
| Earned Income Tax Credit (EITC) |
|
Definition
| provides federal tax credits and sometimes cash to low-income workers |
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Term
|
Definition
| areas where companies can locate free of some local, state, and federal tax laws and other operating restrictions |
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Term
|
Definition
| a program that requires welfare recipients to exchange some of their labor for benefits |
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Term
|
Definition
| a proposed type of tax that would make cash payments to certain groups below the poverty line |
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Term
|
Definition
| a moneyless economy that relies on trade |
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Term
|
Definition
| can be any substance that serves as a medium of exchange, a measure of value, and a store of value. |
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Term
|
Definition
| something accepted by all parties as payment for goods and services. |
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Term
|
Definition
| a common denominator that can be used to express worth in terms that most individuals understand. |
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Term
|
Definition
| the property that allows purchasing power to be saved until needed. |
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Term
|
Definition
| Money that has an alternative use as an economic good, or commodity. |
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Term
|
Definition
| Money by government decree such as the tiny, metallic coins used in Asia Minor in the seventh century B.C. |
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Term
|
Definition
| money in the form of coins made from silver or gold. |
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Term
|
Definition
standard unit of currency in the U. S. money system. |
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Term
|
Definition
| the mechanism designed to keep the money supply portable, durable, divisible, and limited in supply helps with this task. |
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Term
|
Definition
| Banks that received their charter to operate from a state government. |
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Term
|
Definition
| fiat currency that must be accepted in payment for debts. |
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Term
|
Definition
| privately owned banks that received their operating charters from the federal government. |
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|
Term
| National Bank notes or National currency |
|
Definition
paper currency of uniform appearance that was backed by United States government bonds. |
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Term
|
Definition
| paper currency backed by gold placed on deposit with the United States Treasury. |
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|
Term
|
Definition
| Paper currency backed by silver dollars and bullion placed on reserve with the Treasury. |
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|
Term
|
Definition
| paper currency issued by the Treasury that was redeemable in both gold and silver. |
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|
Term
|
Definition
| a monetary standard under which the basic currency unit is equal to, and can be exchanged for, a specific amount of gold. |
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|
Term
| Inconvertible fiat money standard |
|
Definition
| a monetary standard under which the fiat money supply cannot be converted into gold or silver by its citizens. |
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Term
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| The Nations first true central bank. |
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Is a bank that can lend to other banks in times of need. |
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| Paper currency issued by the Fed that eventually replaced all other types of federal currency were added to the money supply. |
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Definition
| a rush by depositors to withdraw their funds from a bank before it failed. |
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Definition
| a brief period during which every bank in the country was required to close. |
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| banks that catered to the interests of business and commerce. |
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Term
| Demand Deposit Accounts (DDAs) |
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Definition
| accounts whose funds could be removed by simply writing a check without prior approval from the depository institution. |
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Definition
accepted the deposits of small investors but did not have DDAs until the mid- 1970s. |
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| Mutual Savings Bank (MSB) |
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Definition
| a depositor-owned financial organization operated only for the benefit of its depositors. |
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Definition
| became no longer mutually owned by depositors. |
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| a type of checking account that pays interest. |
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| Savings and Loan Association (S&L) |
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Definition
| a depository institution that invests the majority of its funds in home mortgages. |
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Definition
| A nonprofit service cooperative that is owned by, and operated for, the benefit of its members. |
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Definition
| interest earning checking accounts, to compete with NOW accounts. |
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Definition
| The removal or relaxation of government restrictions on business. |
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Definition
| A person or institution to whom money is owed and sue the bank's owners to recover the rest. |
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