Economics Unit 1 Ch 2 Test Review Sheet

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Economics Unit 1 Ch 2 Test Review Sheet
2011-09-19 01:50:45

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  1. Capitalism
    Tools, equipment, and factories used in the production of good and services; one of four factors of production
  2. Fixed income
    Income that does not increase even if prices go up
  3. Inflation
    Rise in the general level of prices
  4. Profit motive
  5. Voluntary exchange
    Act of buyers and sellers freely and willingly engaging in market transactions; characteristics of capitalism and free enterprise
  6. Social Security
    Federal program of disability and retirement benefits that covers most working people
  7. Bankruptcy
    Court-granted permission to an individual or business to cease or delay payment on some or all debts for a limited amount of time
  8. Stock
    Certificate of ownership in a corporation; common or preferred stock
  9. Stockholder
    Person who owns a share or shares of stock in a corporation; same as shareholders
  10. Shareholder
    Same as stockholder
  11. Dividend
    Check paid to stockholders, usually quarterly, representing portion of corporate profits
  12. Bond
    Formal contract to repay borrowed money and interest on the borrowed money at regular future intervals
  13. Principal
    Amount borrowed when getting a loan or issuing a bond
  14. Interest
    Payment made for the use of borrowed money; usually paid at periodic intervals for long-term bonds or loans
  15. Conglomerate
    Firm with four or more business making unrelated products, with no single business responsible for a majority of its sales
  16. Multinational
    Corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries
  17. Nonprofit organization
    Economic institution that operates like a business but does not seek financial gain; schools, churches, community service organizations
  18. Cooperative
    Nonprofit association performing some kind of economic activity for the benefit of its members
  19. Credit Union
    Nonprofit service cooperative that accepts deposits, makes loans, and provides other financial services
  20. Labor Union
    Organization that works for its members' interests concerning pay, working hours, health coverage, fringe bebefits, other job related matters
  21. Collective Bargaining
    Process of negotiation between union and management representatives over pay, benefits, and job-related matters.
  22. Better Business Bureau
    Business-sponsored nonprofit organization providing information on local companies to consumers
  23. Public Utility
    Company providing essential services such as water and electricity to consumers, usally subject to some government regulations