-
Economy
The study of how society chooses to use scarce resources to satisfy its unlimited needs and wants
-
-
Wants
Something desired but not need to live
-
scarcity
The fundamental condition of economics that results from the combination of limited resources and unlimited wants.
-
Trade-Off
The sacrifice of one good or service in order to purchase or proudce another.
-
opportunity Cost
the value lost by rejecting one use of resources in favor of another.
-
Traditional economy
economic decisions are based on how exonomic activity has been carried out in the past
-
Command Economy
Governoment makes all economic decisions
-
Market Economy
econmoic decisions are made by individuals lookinig out for their own families' best interest
-
Mixed Economy
Economoy that mixes elemets of different economic systems
-
marginal Cost
Cost of producing one additional unit of output
-
Marginal Benefit
extra/additional, benefit associated with an action
-
Incentive
Something that enxourages an action or effort
-
Capitalism
Economic system based on private ownership of the means of production
-
Free Enterprise
principle that business owners in a free market are allowed to run their businesses in any way they see fit, with little government interference
-
Goods
Products that are manufactures and that consumers can buy and own
-
services
work that does not produce an actual product but which consumers can buy
-
factors of production
resources used in production
-
natural resources
Any material in nature that can be used to produce goods and provied goods
-
Labors
human effort used to make goods and services
-
Capital
money invested in a buisiness; property equipment used to produce goods and services
-
entreprenuer
a business owner
-
Gross domestic Product (GDP)
value of al goods and services produced in a country in 1 year
-
Standard of Living
peoples economic well being as determined by the quantity of goods and services that they consume in a given time.
-
Factor Market
Market where production resources are bought and sold
-
product Market
market where producers offer good and service for sale.
-
Productivity
level of output that results from a certain level of output
-
Specialization
1) Focus of workin only 1 or a few aspects of production in order to improve efficiency. 2) Production only 1 or a few types of products in order to improve the manufacturing process
-
Division of Labor
division of complex procedures into small tasks, which enables workers to increase output throught specialization
-
Economic Interdependence
different regions rely on goods and services from other parts of the world
-
Sole Proprietorship
Business organizations owned by 1 person
-
unlimited Liability
An individual personbears ALL responsibility for a business
-
Partnership
business organization in which 2 or more persons share responsibility,costs, profits, and losses.
-
Corporation
business organization charted by a state governemtna nd given power to conduct buisness, sell stock, and recieve protection of state law
-
stock
a share of ownership in a corperation
-
stockholder
people who own corporate stock
-
limited liability
individualis protected
-
Cooperative
business that is owned collectively by those who use it services
-
Elastic supply
Changes in cost of producing a good lead to big changes in supply for a good.
-
Labor Union
Organizations of workers formed to bargain forhigher wages and iproved working conditions and to proctect workers rights
-
Collective bargaining
Process in which representatives of a labor union and an employer work to reach and agreement about wages and working conditions
-
Mediation
method of settling disputes between labor unions and employers throught the use of a 3rd party who offers a nonbinding solution
-
Arbitration
method of settling differences between labor unions and employers in which a 3rd party's decision must be accepted by both sides
-
strike
situation in which workers walk of the job and refuse to work until labor issues are settled
-
lockout
company refuses to let workers work
-
monopoly
company that controls all production of a good for service
-
Business Cycle
Economic patterns in which a free market economy goes through periods of prosperity and depression
-
Expansion
period in a buisness cycle during which the economy is growing
-
Peak
highpoint in a business cycle
-
recession
sever contraction in a business cycle
-
Monetary policy
a governments policy of regulating the amount of money in the economy
-
Fiscal policy
Governments policy of taxation and spending
-
intrest
payment foe the use of loaned money
-
easy-Money policy
An economic policy that increases the amount of money in the money supply
-
Tight- Money Policy
Economic policy that involves raising intrest rates to decrease the amount of money borrowed and reduce inflation
-
reserve requirement
amount of money banks must have on hand
-
federal reserve system
U.S. banking system that handles banking needs of federal government and regualates the money supply
-
Collateral
Propertyused to guarantee that a loan will be repaid
-
discount rate
rate of intrest charged by the Federal reserve banks on loans to member banks
|
|