Term
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Definition
| objects that can be held or touched that can satisfy people's wants or needs; see product |
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Term
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Definition
| "1. the form or system of rule by which a nation, state or city is governed; 2. the group of persons whose job it is to run the affairs of the state, nation, etc. Government usually exists at 3 levels: federal, state and local; each will typically perform a different function." |
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Term
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Definition
| net taxes (taxes minus transfer payments such as social security and veterans’ benefits) |
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Term
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| "the ownership and operation of the production of goods and services by any level of government to the exclusion of private firms; Examples: the US Postal Service, many water and sewer systems and the central banks of most countries" |
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| rules of conduct for individuals and businesses |
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| without deductions; see gross income |
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Term
| GROSS DOMESTIC PRODUCT (GDP) |
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Definition
| "total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports; usually called the GDP; see nominal GDP and real GDP" |
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Term
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Definition
| the amount of money earned in a pay period before any taxes and other payroll deductions have been subtracted |
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Term
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| "an undifferentiated product; a product in which every unit is just like every other unit Note: One of the qualifications for perfect competition is a homogeneous product. In other market structures, a differentiated product is possible." |
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Term
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Definition
| "investment in labor productivity by means of education, job training, etc." |
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Term
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Definition
| the quantity and quality of human effort directed toward producing goods and services; also called labor |
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Term
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Definition
| costs requiring no cash outlay; cost of keeping self-owned resources in production; see opportunity cost |
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Term
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Definition
| buying products from other countries; the product purchased from another country |
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Term
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Definition
| producing goods in our country to replace goods being imported from other countries |
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Term
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Definition
| "factors that motivate and influence the behavior of households and businesses; Prices, profits and losses act as incentives for participants to take action in a market economy." |
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Term
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Definition
| "1. money received by households in return for the use of the resources that they (households) own; 2. money earned by the factors of production in the form of wages, rent, interest and profit" |
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Term
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Definition
| "taxes paid to the government (federal, state and/or local) by households and business firms on the income they (households) receive" |
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Term
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Definition
| "a tax levied upon the sale of goods or services as opposed to a direct tax which is levied directly upon an individual or business; Examples: sales taxes, employment taxes, tariffs; Note: The burden of both direct and indirect taxes may be shifted through market forces to other parties. see direct tax" |
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Term
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Definition
| a general increase in the price of goods and services; may be caused by an increase in production costs or increases in demand for goods and services |
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Term
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Definition
| "historically, the period of development of technology that allowed nations to change from agriculture based economies to industrial based economies and from hand labor to large scale use of capital goods" |
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Term
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Definition
| the process of using more advanced technology in the production of goods and services |
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Term
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Definition
| a collection of firms producing identical or closely related products |
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Term
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Definition
| demand that is relatively unresponsive to changes in price; the percentage change in quantity demanded by buyers is less than the percentage change in price |
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Term
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Definition
| supply that is relatively unresponsive to changes in price; the percentage change in quantity supplied by producers is greater than the percentage change in price |
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Term
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Definition
| a general increase in the price of goods and services; may be caused by an increase in production costs or increases in demand for goods and services |
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Term
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Definition
| property or money received from an estate or through a will |
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Term
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Definition
| a new and better way to do something |
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Term
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Definition
| resources used to produce a good or service; also called factor input or factor of production |
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Term
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Definition
| "required payments of equal amounts, every month until the loan is paid in full" |
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Term
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Definition
| "protection against the risk of large losses; purchased by paying a relatively small price called the premium; types include automobile, homeowners, life, health, disability to protect against cost associated with losses such as auto accidents, damage to homes, death or illness" |
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Term
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Definition
| "dependence on others for goods and services; occurs as a result of specialization; two or more persons, regions or countries that depend upon each other to supply goods and/or services to satisfy their wants and needs; increases as division of labor and/or specialization increase Example: Wisconsin specializes in the production of cheese while Florida specializes in the production of citrus products. Since neither state wants to exist solely on its own output, they trade and become interdependent." |
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Term
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Definition
| the amount of money paid to a customer by the bank for keeping the customer's money; the amount of money paid to the bank by the customer when the customer borrows money from the bank; also called carrying charge or finance charge |
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Term
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Definition
| interest payments expressed as a percentage of principal amount |
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Term
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Definition
| goods that will be further processed for resale; Example: Sheet metal and glass are intermediate goods purchased by the auto industry and processed further into automobiles. |
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Definition
| exchange of goods and services that takes place between nations |
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Term
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Definition
| a supply of a product or products that a business has “on hand” |
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Term
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Definition
| "in a given situation two factors will respond in the opposite direction to one another; Example: When the price of coffee went up, the amount of coffee consumed went down." |
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Term
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Definition
| the use of money to produce income or profit |
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Term
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Definition
| a bank account shared by two or more people who are official signers on the account |
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