Economic Final

Front 1

Scarcity

Back 1

The basic economic problem that arises because people have unlimited wants but resources are limited.

Front 2

Factors of Production

Back 2

Productive resourses that make up the four categories of land, capitol, labor and entrepreneurship.

Front 3

Financial Capital

Back 3

Money used to buy the tools and equitment used in production.

Front 4

Productivity

Back 4

Degree in which productive resources are uses efficiently.

Front 5

Dividend

Back 5

Check paid to stockholders, usually quarterly, representing portion of corporate profits.

Front 6

Depreciation

Back 6

Gradual wear on capitol goods during production.

Front 7

Horizontal Merger

Back 7

Combination of two or more firms producing the same kind of product.

Front 8

Conglomerate

Back 8

Firm with four or more buisnesses making unrelated products, with no single business responsible for a majority of its sales.

Front 9

Multinational

Back 9

Corporation producing and selling without regard to national boundries and whose business activities are located in several diffrent countries.

Front 10

Nonprofit Organization

Back 10

Economic institution that operates like a business but does not seek finacial gain.

Front 11

Microeconomics

Back 11

Branch of economics theory that deals with behavior and decision making by small units such as individuals and firms.

Front 12

Diminishing Marginal Utility

Back 12

Decreasing satisfaction or usefulness as additional units of variable input are added.

Front 13

Productional Function

Back 13

Graphic portrayal showing how a change in the amount of a single variable input effects the total output.

Front 14

Law Of Variable Proportions

Back 14

Rule stating that short-run output will change as one output is varied while others are held constant.

Front 15

Variable Cost

Back 15

Production cost that varies as output changes; labor, energy, raw materials.

Front 16

Fixed Cost

Back 16

Cost of production that does not change when output changes.

Front 17

Surplus

Back 17

Situation where quantity supplied is greater than quantity demanded at a given price.

Front 18

Market Equilibrium

Back 18

Condition of price stability where the quantity demanded equals the quantity supplied.

Front 19

Invisible-Hand

Back 19

Term used by Adam Smith to describe the natural force that guides free market capitalism through competion for scarce resources.

Front 20

John M. Keynes

Back 20

Radical economist who believed that it was the responsibility of the government to use fiscal resources to countereact the effects of economic problems such as resources.

Front 21

Adam Smith

Back 21

Scottish economist who advocated less government intervention and more market influence in economic related matters amongst people.

Front 22

Product Differentiation

Back 22

Real or imagined diffrences between competing products in the same industry.

Front 23

Positive Extranality

Back 23

Beneficial side effect that affects an uninvolved third party.

Front 24

Negative Externaility

Back 24

Harmful side effect that affects an uninvolved third party.

Front 25

Sherman Antitrust

Back 25

Federal legislation restricting trade relations between states or with foreign countries.

Front 26

Clayton Antitrust

Back 26

Prohibits business practices that impair fair competition.

Front 27

Public Disclosure

Back 27

Requirment forcing a business to reveal information about its products or its operations to the public.

Front 28

Modified free-Enterprise

Back 28

Free enterprise system with some government involvment.

Front 29

Progressive Tax

Back 29

Tax where percentage of income paid in tax rises as levels of income rises.

Front 30

Regressive Tax

Back 30

Tax where precentage of income paid in tax goes down as income rises.

Front 31

Vat Tax

Back 31

Tax on the value added at every stage of the production process.

Front 32

Proportional Tax

Back 32

Tax in whixh percentage of income paid in tax is the same regardless of the level of income.

Front 33

Bill Consolidated Loan

Back 33

Popular type of consumer loan used to pay off multiple existing loans

Front 34

Pension Fund

Back 34

Fund that collects and invests income untill payments are made to eligable recipients.

Front 35

401K

Back 35

A tax-deferred investment and savings plan that acts as a personal pension fund for employees.

Front 36

Mutual Fund

Back 36

Company that sells stock in itself and uses the proceeds to buy stocks and bonds issued by other companies.

Front 37

Stock

Back 37

Certificate of ownership in a corperation.

Front 38

Bond

Back 38

Formal contract to repay borrowed money and interest on the borrowed money at regular future intervals.

Front 39

Treasury Bills

Back 39

Short-term United States government obligation with a maturity of one year or under denominations of $1,000.

Front 40

Municipal Bonds

Back 40

Bond, often tax exempt, issued by state and local governments.