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Definition
| the science that studies the choices of people trying to satisfy their wants in a waorld of scarcity |
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| when wants are greater than the resources available to satisfy those wants |
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| the most highly valued opportunity or alternative forfeited when a choice is made |
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| the study of economics as it relates to the entire economy |
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| the study of economics as it relates to relatively small units like individuals, single firms, or single markets |
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| the way in which a society decides what goods to produce, how to produce them, and for whom goods will be produced |
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| an economic system in which individuals own and control the use of most resources |
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| a government program that specifies the direction economic activities are to take (such as what goods are to be produced) |
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| the resources of land, labor, capital and entrepreneurship. |
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| an economic system in which the government owns and controls many resources |
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| a person who organizes, operates, and assumes the risk for any business ventures |
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| any good that is owned by an individual or a business |
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| any good that is owned by the government |
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| the willingness and ability of buyers to purchase a good or service |
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Definition
| the graphical representation of the law of demand |
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| a law stating that there is an inverse relationship between quantity and price (price up, quantity demanded down) |
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Definition
| the relationship between the percentage change in quantity demanded and the percentage change in price |
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Definition
| the willingness and ability of sellers to produce and offer a good or service |
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Definition
| a graphical representation showing the amount of a good sellers are willing and able to sell at various prices |
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| a law stating that the quantity supplied is directly related to the price (price up, quantity supplied up) |
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| the relationship between the percentage change in quantity supplied and the percentage change in price |
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| the price where there is a balance in the market between demand and supply |
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Definition
| anything of value to which a firm or an individual has legal claim |
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| a business that is owned by one individual who makes all business decisions |
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| a business that is owned by two or more co-owners |
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| a legal entity that is owned by those who purchase shares and is run by a board of directors |
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| a share of the ownership of a corporation (owners receive stock certificates) |
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| a certificate of debt issued by a corporation or government |
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| the condition where holders of stock certificates in a corporation can only lose the amount that they have invested |
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| the legal responsibility of a sole proprietor of a business or a partner in a business to pay any money owed by their business |
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| a share of the profits of a corporation that is distributed to stockholders |
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| a contract by which a firm lets a person or group use its name and sell its good or services in exchange for payments and certain requirements being met (Franchiser-Franchisee) |
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| costs that remain the same regardless of the number of units produced |
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| costs that change with an increase in production |
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Definition
| fixed costs plus variable costs |
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Definition
| price of the good times the number of units of a good sold |
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Definition
| total revenue minus total cost |
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| law of diminishing returns |
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Definition
| additional output will at some point decrease as additional resources (such as labor) are added to fixed capital |
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Definition
| a market structure in which there is a single seller |
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Definition
| a market structure in which there are many buyers and sellers of goods that are nearly identical |
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| a market structure in which there are many buyers and sellers of goods that are slightly differentiated |
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| a market structure in which there are few sellers of nearly identical products |
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Definition
| an organization that seeks to increase the wages and improve the working condition of its members |
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| a work stoppage called by members of a union to place pressure on an employer |
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Definition
| a law to set a floor on wages paid to workers |
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| a side effect of an action that effects a third party |
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| an event or action that causes an adverse side effect to a third party |
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| the minimum price, as determined by government, that farmers will receive for some agricultural products. (government-guaranteed) |
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| a joining of two companies when one company buys more than half the stock in the other company |
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Definition
| a federal and state program that provides health care to low income individuals |
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Definition
| a nationwide federal health insurance program for people over 65 and those with disabilities |
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Definition
| benefits usually provided by the government other than money (food stamps, etc.) |
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Definition
| indentifies the income below which people are considered to be living in poverty |
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Definition
| it refers to anyone, other than the patient, who pays a health care bill. (insurance company, government, etc.) |
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Term
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Definition
| it is a card that is used to transfer or withdraw a persons own funds. (can be used for purchases) |
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Term
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Definition
| paper money issued by the federal reserve |
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Term
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Definition
| the total supply of money in circulation, composed of currency, checking accounts, and travelers checks |
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Term
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| assets, such as non-checking savings accounts, that can be easily turned into cash |
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Term
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Definition
| another name for a checking account |
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Definition
| a card issued by a bank (or other business concern) that authorizes the holder to buy goods and services on credit |
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Term
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Definition
| the fed; the central bank of the united states |
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Term
| federal open market committee |
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Definition
| a 12-member policy-making group within the fed that buys and sells U.S. government securities |
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Definition
| the interest rate the fed charges a bank for a loan |
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Definition
| the interest rate one bank charges another bank for a loan |
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Definition
| deposits in the reserve account at the fed and vault cash |
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Definition
| the minimum amount of reserves a bank must hold against its deposits |
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Definition
| any reserves held beyond the required amount (may be lent or invested) |
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Definition
| the deliberate control of the money supply by the Fed |
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Definition
| changes the government makes in spending or taxation to achieve particular economic goals |
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Definition
| recurrent swings (up and down) in real GNP |
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Term
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Definition
| GDP that has been adjusted for price changes (inflation or deflation) |
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Term
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Definition
| CPI; the most widely cited price index (used to measure inflation) |
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| GDP; the total market value of all final goods and services produced annually in an economy |
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| workers have lost their jobs because their skills do not match the requirements due to technological changes |
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Definition
| unemployment due to business cycles (believed to be related to changes in aggregated demand) |
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Definition
| unemployment that is caused by frictional and structural factors |
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Definition
| economists often quote it as 4% or less unemployment |
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Term
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Definition
| the occurrence of inflation and high unemployment at the same time |
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Definition
| the amount that the federal government owes its creditors. (sum of all deficits) |
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Definition
| the amount that the federal government falls short of its required budget during one year |
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Definition
| a tax where the rate increases as the income level rises |
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Term
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Definition
| a tax where everyone pays the same rate of tax regardless of income level |
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Term
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Definition
| a tax where an individual pays a lower rate as his or her income level rises |
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Definition
| the merchandise that is sold to other countries (or the dollar value of these sales) |
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Definition
| products bought from other nations (or the dollar value of these purchases) |
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Definition
| the difference between the value of a nations exports and the value of its imports |
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Definition
| the ability of one nation to produce a product with fewer resources than other countries |
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Definition
| the situation in which a country can produce a good at lower opportunity cost than another country |
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Definition
| a legal limit on the amount of a good that may be imported |
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Definition
| the selling of goods in foreign countries at prices below their costs and below the price charged in their home markets |
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Definition
| the price of one nations currency in terms of another nations currency |
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Definition
| international monetary fund; an organization that provides economic advice and temporary funds for nations with economics difficulties |
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Definition
| a contract that conveys property for a specific time period for a fee |
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Definition
| renting from a renter rather than from an owner |
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Definition
| A government agency established by Congress in 1933 to insure bank deposits |
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Definition
| an increase in the value of an investment |
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Definition
| economic theory based on the ideas of John Maynard Keynes. (Gov intervention is good) |
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Definition
| the largest development bank in the world (lends money to less developed nations) |
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