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37 Cards in this Set
- Front
- Back
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American Stock Exchange (AMEX) |
Third largest stock exchange, located in New York City. Handles 10% of priorities traded in the US. |
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Securities Exchange Commission (S.E.C.) |
U.S. Government agency that oversees transactions of financial professionals to prevent fraud and deception. |
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New York Stock Exchange (NYSE "Big Board") |
Oldest stock exchange in the United States (located on Wall Street). |
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Dow-Jones Industrial Average |
Price-weighted average of 30 significant stocks on the NYSE and NASDAQ. |
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Bull Market |
Financial market that is rising or expected to rise. |
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Bear Market |
Market in which prices are falling. (Selling) |
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Conglomerate |
Corporation made up of different businesses. |
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Public Corporation |
Company whose shares are traded freely on a stock exchange. |
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Portfolio |
A range of investments held by a person or organization. |
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Society's Economic Goals |
employment, stability, economic growth, efficiency, equity |
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4 Factors of Production |
land, labor, capital, entrepreneurship |
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Fundamental Economic "Problem" |
Economy's limited resources are not enough to satisfy all human wants and needs |
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Basic Economic Questions |
What to produce?; How to produce?; For whom to produce? |
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Invisible Hand |
Unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium. |
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Adam Smith |
Considered the "father of economics," came up with the ideas of the "invisible hand" and "capitalism" |
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Karl Marx |
"Label theory of value." = Value of a good or service is dependent on the labor required in production |
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Traditional Economy |
Original economic system in which traditions, customs, and beliefs shape the goods and services produced |
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Market Economy |
Production and distribution determined by supply and demand |
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Command Economy (socialism) |
Production and distribution determined centrally by a government |
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Mixed Economy |
System combining private and public enterprise
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What type of graph is this? |
Guns and butter graph (demonstrates the idea of opportunity cost) |
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What type of graph is this? |
Demand curve graph (demonstrates "lower the quantity, lower the price and vice versa") |
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What type of graph is this? |
Supply curve graph (demonstrates "higher production, higher price") |
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Entrepreneur |
Person who operates a business, taking great financial risks |
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Capital |
Wealth in the form of money or other assets owned by a person or organization for a purpose |
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Land |
Naturally occurring resources with fixed supply |
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Labor |
Human exertion in production of wealth and services |
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Opportunity Cost |
Loss of potential gain from other options when a decision is made. |
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Scarcity |
Short supply; shortage. |
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Incentive |
A benefit or reward that motivates an economic action |
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Competition |
Rivalry among sellers to achieve economic goals |
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Capitalism |
Economic system in which a country's trade and industry are controlled by private owners, rather than by the state (Adam Smith) |
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Communism |
All means of production are owned by the government (Karl Marx) |
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Economic Equity |
Concept of fairness in economics (taxation and welfare) |
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Economic Efficiency |
Economic state in which every resource is allocated to serve each individual in the best way, minimizing inefficiency |
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Economic Freedom |
Ability of members in a society to take economic actions |
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Economic Growth |
Increase in the amount of good and services produced per head of the population |
