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104 Cards in this Set

  • Front
  • Back
the theory that education increases productivity and results in higher wages
learning effect
an unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men
glass ceiling
it produces neither an excess supply of workers nor an excess demand for workers in the labor market
equilibrium wage
the value of output
someone in a professional or clerical job who usually earns a salary
white-collar worker
labor that requires minimal specialized skills and education
semi-skilled labor
the value of a foreign nation's currency on terms of the home nation's currency
exchange rate
a limit on the amount of a good that can be imported
import quota
the concentration of the productive efforts of individuals and firms on a limited number of activities
the ability to produce a product mmost efficiently given all the other products that could be produced
comparative advantage
a tax on imported goods
the result of a nation exporting more than it imports
trade surplus
the result of a country importing more than it exports
trade deficit
created by Congress to help protect investors by regulating stock transactions
price per share of stock divided by earnings per share for a 12 month period
PE ratio
change in the price of a security from the closing price on one day to the closing price on the next trading day
net change
well-established company with good earnings and regular stock dividends
blue chip
stock with a claim on the company's earnings before payment can be made on common stock
preferred stock
an index of stocks representing about 70 percent of the total market value of American stocks
S & P 500
profit or loss from selling services
Capital gain/loss
a broker's basic fee for purchasing or selling securities
an electronic stock market; provides brokers and dealers with price quotations on securities traded over the counter
an index, or statistical average, based on the market price of 30 leading companies listed on the New York Stock Exchange
Dow Jones Industrial Average
a declining market
bear market
important facts about plans or conditions of a corporation that have not been released to the public
insider information
World's largest securities market. Only stocks with major corporations that have met the exchange's requirements for financial solidity are listed.
New York Stock Exchange
a payment to stockholders from the corporation's earnings
the act of redirecting resources from being consumed today so that they may create benefits in the furture; the use of assets to earn income or profit
the system that allows the transfer of money between savers and borrowers
financial system
claim on the property or income of a borrower
financial asset
institution that helps channel funds from savers to borrowers
financial intermediary
fund that pools the savings of many individuals and invests this money in a variety of stocks, bonds, and other financial assets
mutual fund
spreading out investments to reduce risk
a collection of financial assets
an investment report to potential investors
the money an investor receives above and beyond the sum of the money initially invested
the money an investor receives above and beyond the sum of the money initially invested
coupon rate
the time at which payment to a bondholder is due
the amount that an ivestor pays to purchase a bond and that will be repaid to the investor at maturity
par value
the annual rate of return on a bond if the bond were held to maturity
low-denomination bond issued by the US government
savings bond
a bond issued by a state or local government or municipality to finance such improvements as highways, state buildings, libraries, parks, and schools
municipal bond
a bond that a corporation issues to rise money to expand its business
corporate bond
an independent agency of the government that regulates financial markets and investment companies
Securities and Exchange Commission
a lower-rated, potentially higher-paying bond
junk bond
market in which money is lent for periods longer than a year
capital market
market in which money is lent for periods of less than a year
money market
market for selling financial assets that can only be redeemed by the original holder
primary market
market for reselling financial assets
secondary market
portion of a stock
claims of ownership in a corporation
the difference between a higher selling price and a lower purchase price, resulting in financial gain for the seller
capital gain
the difference between a lower selling price and a higher purchase price resulting in a financial loss to the seller
capital loss
the division of a single share of stock into more than one share
stock split
s person who links buyers and sellers of stock
a business that specializes in trading stock
brokerage frim
a market for buying and selling stock
stock exchange
an electronic marketplace for stocks and bonds
OTC market
contracts to buy or sell at a specific date in the future at a price specified today
contracts to give investors the choice to buy or sell stock and other financial assets
the option to buy shares of stock at a specified time in the future
call option
the option to sell shares of stock at a specified time in the future
put option
the practice of making high-risk investments with borrowed money in hopes of getting a big return
a system that collects macroeconomic statistics on production, income, investment, and savings
national income accounting
goods used in the production of final goods
intermediate goods
goods that last for a relatively long time, such as refrigerators, cars, and DVD players
durable goods
goods that last for a short period of time such as food, light bulbs, and sneakers
nondurable goods
GDP measured in current prices
nominal GDP
GDP expressed in constant, or unchanging, prices
real GDP
the annual income earned by US-owned firms and US citizens
gross national product
the loss of the value of capital equipment that results from normal wear and tear
the average ofa ll prices in the economy
price level
the total amount of goods and services in the economy available at all possible price levels
aggregate supply
the amount of goods and services in the economy that will be purchased as all possible prices
aggregate demand
unemployment that occurs when people take time to find a job
frictional unemployment
unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season
seasonal unemployment
unemployment that occurs when workers' skills do not match the jobs that are available
structural unemployment
unemployment that rises during economic downturns and falls when the economy improves
cyclical unemployment
an official count of the population
the percentage of the nation's labor force that is unemployed
unemployment rate
the level of employment reached when there is no cyclical unemployment
full employment
working at a job for which one is over-qualified, or working part-time when full-time work is desired
a person who wants a job but has given up looking
discouraged worker
a general increase in prices
the ability to purchase goods and services
purchasing power
a measurement that shows how the average price of a standard group of goods changes over time
price index
a price index determined by measuring the price of a standard group of goods meant to represent the "market basket" of a typical urban consumer
Consumer Price Index
a representative collection of goods and services
market basket
the percentage rate of change in price level over time
inflation rate
the rate of inflation excluding the effects of food and energy prices
core inflation rate
inflation that is out of control
theory that too much money in the economy causes inflation
quantity theory
theory that inflation occurs when demand for goods and services exceeds existing supplies
demand-pull theory
theory that inflation occurs when producers raise prices in order to meet increased costs
cost-push theory
the process by which rising wages cause higher prices, and higher prices cause higher wages
wage-price spiral
income that does not increase even when prices go up
fixed income
a sustained drop in the price level
the percentage of people who live in households with income below the official poverty line
poverty rate
how the nation's total income is distributed among its population
income distribution
government-issued coupons that recipients exhange for food
food stamps
the curve that illustrates the income distribution
Lorenz Curve
area where companies can locate free of certain local, state, and federal taxes and restrictions
enterprise zone
federal funds given to the states in lump sums
block grant
a program requiring work in exchcange for temporary assistance