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19 Cards in this Set

  • Front
  • Back
product market
the system of markets in which households purchase goods and services from firms
resource market
consists of markets for factors of production that firms use to make the goods and services they sell on the product list
circular flow model
represents goods, services, and incomes in the economy as flowing in a circle, from households to firms and back again
sole proprietorships
firms with only one owner, who bears full responsibility for the firm's success or failure
partnerships
firms led by a small number of people who share the firm's profits and responsibility for its failures
corporations
firms that have a large number of owners, each of whom has only a small share of the overall responsibility for the firm
transfer payments
funds shifted from one group or sector to another without involving an exchange or transaction (government gives money for free to people)
income taxes
a tax levied on personal income or corporate earnings
sales tax
a tax levied on personal income or corporate earnings
property tax
tax on land and structures
budget deficit
excess of spending by the government over tax revenue
budget surplus
excess of tax revenue over government spending
closed economy
an economy in which households and firms do not engage in international trade
open economy
an economy in which households and firms engage in international trade
imports
goods and services that domestic households, firms, and governments buy from foreign producers
exports
goods that domestic producers sell to foreign households, firms, and governments
net exorpts
the difference between the injection of exports and the leakage of imports
trade surplus
excess of exports over imports
trade deficit
excess of imports over exports