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