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150 Cards in this Set
- Front
- Back
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Administrator |
A court appointed person entrusted with the disposition of the estate of one who die without a will |
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Amortization schedule |
A chart displaying the monthly interest costs of a loan at a given rate of interest |
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Appreciating assets |
Goods that increase in value over time |
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Bait and switch |
Deceptive advertising that draws customers into the business for an advertised product that is unavailable or unsuitable thereby providing that is unavailable or unsuitable thereby providing an opportunity to sell a more expensive product |
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Barter |
The exchange of one person goods or service for another good or services |
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Budget |
A tabulation of income and planned expenditures |
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Budget deficit |
A situation in which a government business firm, or individual receives less income than is paid out in expenses |
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Budget surplus |
A situation in which a government business firm or individual receives more income than is paid out in expenses |
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Business cycle |
An Economic condition consisting of alternating periods of rising and falling real GNP and is characterized by four phases: expansion, peak, recession, and trough |
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Capital goods |
Goods that are used to produce consumer goods; also called real capital |
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Capital intensive |
Description of a business firm that uses more automated equipment than human labor |
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Capitalism |
An economic system in which private individuals own most of the factors of production and make most economic decisions |
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Cartel |
A group of producers who agree to control the price of their goods |
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Caveat Emptor |
"Let the buyer be aware!" |
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Central Bank |
A bank that the government used to control and accommodate the nations finances by providing an elastic national currency |
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Centralized socialism |
A form of socialism in which the gov is both the central owner and the decision maker |
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Certificate of deposit |
Time deposit which carry a specific maturity date and yield a high rate of interest |
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Change in demand |
The shifting of a demand curve experienced when demand for an item increases or decreases regardless of price |
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Change in quantity demanded |
When the change in the price of an item causes a change in the number demanded |
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Change in quantity supplied |
When the change in the price of an item causes a change in the number supplied |
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Change in supply |
The shifting of a supply curve that occurs when suppliers are willing to produce more or less of an item regardless of price |
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Classic liberal capitalism |
The form of capitalism allowing gov only minimal ownership of resources |
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Codicils |
An amendment to a will |
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Collateral |
valuable goods that may be taken by a lender and resold if the borrower does not repay his loan |
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Communism |
In the economic sense, the most extreme form of socialism in which all individuals voluntarily contribute their labor for the good society |
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Complementary goods |
Goods that are usually purchased or used together |
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Compound interest |
The calculation of interest on reinvested interest as well as on the original principal |
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Consumer durable goods |
Goods that have a life expectancy of more than one year |
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Consumer goods |
Goods that are purchased for personal use |
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Consumer nondurable goods |
Items that are expected to be worn out or used up within one year |
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Consumer price index |
Figures measuring changes in prices that house holds consumers pay for their purchases |
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Consumption borrowing |
The use of debt to purchase goods which will be consumed almost immediately |
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Consumption expenditures |
The total expenditures made by all house holds |
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Contingency |
An uncertain or unexpected event that may result in unplanned expenses |
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Corporation |
A business enitity recognized by the gov as seperate from its owners or stockholders |
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Cosigner |
One who obligates himself to pay the debts of another; surety |
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Cosigning |
Agreeing to pay the debt of another person if he does not pay it |
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Cost of living adjustment |
Adjustments of wages, payments, and other sums according to inflation levels |
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Cost push inflation |
Inflation believed to be triggered when a nation's businesses raise their prices, resulting in new demands by consumer for higher wages from their employers |
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Credit limit |
The maximum amount a borrower may draw from an open-end credit account |
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Creditor |
A lender to whom a debt is owed |
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Crowding out |
A situation in which government borrowing reduces the financial capital available to business firms |
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Cyclical unemployment |
Unemployment caused by the downside of the buisness cycle |
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Debtor |
A borrower who is in debt for the credit he has received |
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Decrease in demand |
A leftward shift in the demand curve representing a decrease in the willing to produce at any price |
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Decrease in supply |
A leftward shift of the supply curve indicting a decrease in the quantity suppliers are willing to produce at any price |
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Deductible |
An amount which must be paid by a policyholder before his insurance will begin to cover claims |
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Default |
Failure to pay money when it is due |
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Deflation |
A situation in which the general price level is declining; usually caused by a reduction in growth rate of the money supply |
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Demand |
How many units of a product will be bought at a given price |
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Demand-pull inflation |
Inflation believed to be triggered when consumers demand more products |
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Depression |
A severe and prolonged trough phase a business cycle |
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Discount rate |
The interest rate charged by the federal reserve bank system |
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Discouraged workers |
Chronically unemployed people who have been out work for six months or more |
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Economic goods |
Goods that bear a positive economic cost |
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Economic model |
A simplication of how factors in the enviorment affect choices |
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Econ |
The science of how and why people, business, and gov make the choice that they do |
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Effective interest rate |
The true rate of interest derived from compounding interest at the nominal interest rate |
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Entrepreneurship |
The factor of production denoting the activity of creatively combining natural resources, human labor, and financial capital |
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Escrow account |
A sum of money collected by a lender in addition to loan repayments for the purpose of paying for taxes and insurance to protect the mortgaged property |
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Economic social democracy |
A form of socialism in which the states takes possession of the economic major industries |
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Expansion phase |
That part of the business cycle in which the nation's GNP is on the rise, the number of available jobs are growing, the unemployment is falling |
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Expenditure multiplier |
That means by which any given change in expenditures causes a greater change in nationals income |
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Extensive growth |
The ability to produce more goods and services because business firms are using more land, land, labor or financial capital |
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Factors of production |
The resources used in producing the nations GNP; they include land, labor, financial capital, and entrepreneurship |
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Favorable balance of trade |
Cond experience when a nation sells more goods abroad than it purchases |
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Federal insurance contribution act |
Legislation requiring the deduction of social security from workers paycheck |
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Federal reserve banking system |
The government institution that serves as the central bank of the united States |
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Fiat money |
Money that is not backed by anything of value but serves as money because governmental decree |
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Final goods and services |
Goods and services that are sold to ultimate users |
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Fiscal agent |
The gov Bank |
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Fiscal policy |
The ability of the gov to affect GNP and employment through way it spend it's money |
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Fixed expense |
Expenses which don't rise or fall as family's income changes in the short run |
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401(k) plan |
An employer sponsored retirement |
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Free goods |
Goods provided freely by God in nature |
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Frictional unemployment |
Unemployment resulting merely because people are temporarily between jobs |
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General partnership |
A business firm owned by two or more people |
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Good |
Any tangible thing that has a measurable life span |
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Gross national product |
The total dollar value of all final goods and services produced by a nation in one year |
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Increase in demand |
A rightward shift in the demand curve representing a willingness on the part of buyers to demand more of a good or service at every price |
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Increase in supply |
A rightward shift in the supply curve |
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Individual retirement account |
A retirement account held in a financial institution and to which made by qualified account holder |
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Inferior good |
A good which typically experiences a decrease in demand as buyers income increase |
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Inflation |
The situation in which which over- expansion of the nations money supply leads to a sustained rise in the average price level |
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Insatiability |
The cond of having unlimited wants and this never being satisfied |
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Installment credit |
Paying for a purchase with periodic payments according to a loan contact |
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Intensive growth |
The ability of business firms to factor production with greater effenciency |
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Interest |
An additional charge that a creditor demands from a borrower to cover the expense of the loan and to provide a profit |
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Intermediate goods |
Goods that are purchased either to be resold immediately or to be incorporated into other goods |
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Intrinsic value |
Value ascribed to a good or service because of its nature |
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Investment borrowing |
The use of debt to purchase good which will increase in value |
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Keynesian economics |
Economics policies based upon the ideas of John Maynard Keynes |
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Labor |
The factor of production denoting all human effort that goes into the creation of hours and services |
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Labor intensive |
Description of a business firm that uses a great deal of human labor relative to real capital |
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Laissez faire |
Leave the economy alone |
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Land |
The factor of production denoting all the natural resources that go into the production of goods |
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Law of demand |
Everything else being held consistance, the lower the price charged for a good or service, the greater the quantity people will demand and vice versa |
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Law of supply |
The higher the price buyers are willing to pay other things being held constant, the greater the quantity of the product a supplier will produce and vice versa |
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Limited partnership |
A partnerdhip in which there is at least one general partner who has unlimited personal financial liability |
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Macroeconomics |
The level of econ study that is covered with large scale econ choices and issues |
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Market equilibrium point |
The point at which the demand curve and the supply curve for an item intersect |
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Market equilibrium price |
The price corresponding to the intersection of an item's supply and demand curves and which point consumers are willing to buy the same quantity. |
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Mercantilism |
Economic philosophy commonly held in Europe from the 16th & 18th centuries |
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Micro economics |
The level of economics study that is concered with choices made by individual units |
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Money |
Anything that is commonly used and generally accepted in payment for good and services; a medium of exchange |
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Monopoly |
A form of market organization in which there is only one supplier in the industry seeking in the industry |
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National industrial policy |
Attempts by national gov to foster the growth of certain industries through the provision of low interest rate l loans and tax advantages |
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Net export |
The difference betweenthe dollar amount a nation takes in from the sales of exports and the dollar amount it pays for imports |
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Net worth |
The value of what a debtor owns minus the amount he owns |
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Nominal GNP |
The gross national product reported in current or nominal dollar values |
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Nominal interest rate |
The stated rate of interest paid by a financial institution |
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Normal good |
A good for which demand typically increases when buyers income increases |
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Normative econ |
The approach to econ study involving value judgment about existing and proposed economics policies |
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Open market operations |
The purchase or sale of gov securities by the federal reserve banking system in order to inject or withdraw money |
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Partnership |
A business firm owned by two or more people |
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Payee |
The one receiving a check |
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Peak phase |
That part of the business cycle in which rapid expansion comes to a halt as shortages in natural resources, high wages, low unemployment and rising interest rates combine to create higher prices |
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Premium |
A regular payment for insurance |
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Price ceiling |
A barrier preventing the price of an item from rising above a certain price |
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Price floor |
A barrier preventing the price of an item from falling lower than a certain price |
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Principle |
The original amount of the loan received by the borrower |
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Principle of diminishing marginal utility |
People tending to receive less and less additional satisfaction from any good or services |
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Profits |
Factor cost involving the rewards entrepreneurship receives for successful risk taking |
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progressive tax |
A tax that takes a greater percentage of a person's income as his income increases |
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Proportional tax |
Attacks in which all people pay the same percentage of their earnings |
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Real capital |
The tools of business firms use to produce goods and services |
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Recession |
Two consecutive quarters of declining real gross national product |
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recessionary phase |
the part of the business cycle in which consumer purchases decline in employment increases |
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Rule of 72 |
The approximate number of years required for interest to double a deposit multiplied by the interest rate should equal |
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Scarcity |
The condition of a good or service being finite or limited in quantity |
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Service |
And intangible function produced by useful labor |
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Shortage |
An insufficient supply of an item as a result of its price below the market equilibrium price |
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Simple interest |
Interest compounded annually |
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Social Security |
a government mandated employer or employee finance retirement and disability plan |
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Socialism |
Economic system in which is central authority committee or the people in common generally on the factors of production and make economic decisions |
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Sole proprietorship |
A business firm that is owned by one person |
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State capitalism |
Forma capitalism in which the vast majority of the factors of production are owned by private citizens but the government intervenes widely and economic decisions to ensure that egalitarian goals are carried out |
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Stock |
Shares are portions of ownership in a corporation |
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Supply |
The amount of goods and services businesses firms are willing enable to provide at different places |
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Supply curve |
Graph illustrating the quantities of an item that suppliers are willing to produce at various prices |
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Surety |
12 obligations self to pay the debts of another cosigner |
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Surplus |
An excess of an unsold product resulting from a price above the market equilibrium |
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Term |
The. Of time in which a debtor must repay his loan according to the |
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Trade deficit |
A negative balance of trade experience when a nation imports more than it exports |
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Trade surplus |
A positive balance of trade experience when the nation exports more than it imports |
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trough phase |
That part of a business cycle in which the recessionary face has bottomed out and the unemployment rate is high while prices and incomes are low |
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Utility |
Usefulness |
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Variable expenses |
Expenses which may rise and fall as a family's income changes |
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Welfare state |
A nation under extreme state capitalism in which high taxes are used to provide wide social programs |
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Worker management socialism |
A form of socialism in which the government owns all business firms but also the workers to make many major economic decisions collectively |
