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100 Cards in this Set

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Proprietary Right
Party Exercises private ownership; control or use over an item of property, usually to the exclusion of others
Society
A self reproducing group of individuals occupying a paticular territory, which may have its own distinctive culture and institution
Utopian
Perfect Society; Ideal
Reserve
Percent of deposit that the bank keeps
Inflation
Period of rising prices and purchasing power falls
Hyperinflation
When value of currency falls and rapid rate over short period of time
Fiscal
Use of government power to spent to regulate economic activity
Demand and Deposits
Checking accounts held by commercial bank
Regressive
One that takes a higher percentage of a low income and a lower percentage of a high income
Frictional unemployment
Unemployment that is always present in the economy resulting from temporary transitions made by workers or employees or from workers or employees with incomplete info.
Override
Any arrangement that allows a user to take control of an otherwise automatic system or prevent an automatic system from performing its function
Conglomerate
Diversified company with a wide array of businesses
Total Revenue
Total sales and other revenue for the period shown
Proprietary Right
Party exercising private ownership, control or use over an item of properaty usually to the exclusion of others
Total Revenue
Total of all the money or other items of value that come into the company during the given period. Includes sales, interest, income, proceeds from the sale of a subsidiary.
District Banks
One of 12 banks in Federal Reserve. System overseeing banking in its region.
Cylical Unemployment
Unemployment resulting from changes in general levels of business activity.
Currency
Paper money/coins/ issued by federal govt.
Flat Tax
A tax that would eliminate most deductions and apply same tax to all incomes
NRA
National Rifle Association
Death and Taxex
Two things you can't escape in life.
Excise Tax
Tax levied on a manufactured item or sale of a specific item
Line Item
A way to eliminate wasteful spending
Proportional
Everyone has the same tax rate or taxed same percentage
Oligopoly
Market dominated by a few large firms
trademark
Special design, name or unique symbol that identify a product; usually registered and protected by law
grievance
Steps employees follow if they feel they've been treated unfairly
Arbitration
Settling differences by allowing a 3rd party to hand down decisions that is final and binding
NLRB
National Labor Regulation Board
Board of Directors
Elected reps of corporate stockholders
Standard of Living
Measure of amounts of goods and services available to citizens
Corporate Bond
IOU's corporations issue when borrowing money for long periods of time
Net Worth
Differences between firms assets and liabilities
Division of Labor
Breaking down large tasks into series of smaller ones so that each laborer completes one or fewer steps involved
Sole Proprietorship
Business owned by one Person
REnt
Return paid to those who supply the factor of production
Corporation
Busineeses managed on behalf of its owners, stockholders, who provide the funds
Stockholders
Owner of a stock in a corporation
Proxy
Written authorization instructing others how to vote at a stock holders meeting
Principal
Amount borrowed
Corporation
Business managed on behalf of it's owners, stockholders who provide the funds
Franchise
Licence to operate an individually owned business in a specific geographic area such as a part of a large chain
Partnership
Business owned by 2 or more people
Consumer
Members of a household who use goods and services that businesses produce; those who buy these items for personal use
interest
Payment for using some else's money; income for allowing someone to use your money
Mortgage
Loan term loan to purchase property
Wealth
Total value of one's tangible assets
Price
Money value of a good or service
Money
Anything generally accepted for payment of goods or services; legal tender
Demand
Quantities of particular goods and services consumers are willing and able to buy at different prices at a particular time
Substitute Goods
2 goods that satisfy similar wants
Scarcity
Result of inability to satisfy all wants
Profit
What remains after cost of doing busineess have been met
Free Enterprise
Market economy or captialism
Entrepreneur
Person who takes risk to create new product
Substitute Goods
2 goods that satisfy similar wants
Scarcity
Result of inability to satisfy all wants
Profit
What remains after cost of doing busineess have been met
Free Enterprise
Market economy or captialism
Entrepreneur
Person who takes risk to create new product
Substitute Goods
2 goods that satisfy similar wants
Scarcity
Result of inability to satisfy all wants
Profit
What remains after cost of doing busineess have been met
Free Enterprise
Market economy or captialism
Entrepreneur
Person who takes risk to create new product
Complementary Goods
Goods often used together
Competition
Rivalry between buyers and sellers
Bankruptcy
When you spend more than you make and you have to file for legal protection
Buying Power
The power of money
Override
Any arrangement that allows a user to take contral of an otherwise automatic system or prevent an automatic system from performing its function
Functional Unemployment
Unemployment that is always present in the economy resulting from temporary transitions made by workers or employees or from workers and employers having incomplete info.
Conglomerate
Diversified company with a wide array of business
How can you invest in a company?
Stock
What do you need to include in a budget?
Income
Needs
Expenditures
3 Types of Investements
Savings, Money Market, Bond, CD
Natural Monopoly
When gov sets up something as a monopoly because it is 2 expensive for competition
An agreement in which companies restrict production to raise profit and an ex.
Collusion
Ex. Price, Production, Enforcement
What is the eurodollar and how is it different from the US dollar?
Euro dollars are deposits denomiated in US dolllars at banks outside the US but not under federal jurisdition.
Free Trade
Absence of Trade Restrictions
3 Characteristics of a monopoly and 3 ex.
Single Seller
No close substitutes
Barriers to entry

Ex. telephone, electric and water
What are 3 reasons US workers today produce more than in previous decades?
Like the past shift of workers from farms to factories the present shift of employment to services produces discomfort makes workers work harder
What do you call a market with many sellers offering similar products
Pure Price Competition
5 mains parts of a financial statement
Balance sheet, income statement, statement cash flow, statement retained earnings, assets, liabilities, net worth, total assets, total liabilities and net worth
Advantages of a corporation
Limited liability
Ease of transfer
Unlimited life
Tax advantage
Disadvantages of a Partnership
Unlimited liability
limited funds
limited potential
Advantages of sole proprietorship?
profits
taxes
personal achievement
What is GDP?
4 major components
Gross domestic product
market value of goods and services produced in a given time; measured in 1/4 intervals
How are corporation profits distributed to owners?
Dividends
What regulates secondary markets?
Stockmarket
Bondholders paid by Corporations
Stocks
Wage
The earnings of a worker paid by hour or units of production
Rationing
System of allocating goods and services that are in short supply
What causes an increase in demand?
Chnage in style, tasks, habits change in income if income increases people have more money to spend
Price or availabity of substitutes
Change in weather
What do economists call a shortage?
Economists want to buy more than seller wants to sell at a given price
Elasticity
Price effectis large
What causes a decrease in supply?
Increase in production cost, expectations of higher future cost
What is inelasticity/
Price effect small
Why do producers offer more product at higher prices than lower?
to make profit
Elasticity of Demand
Measurement of imnpact of price effect when that effect is large the demand is elastic, small change in price causes large change
Why is money the best median of exchange
bc you can use money 2 get what you want since other businesses use it