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104 Cards in this Set

  • Front
  • Back
Need
something that you need to survive
want
something you necessarily don't need for survival but that you desire
good
physical good
services
doing something for someone else, providing assistance
scarcity
limited resources for unlimited wants
factors of production
land, labor, capital used to produce a good or service
entrepeneur
a risk taker who combines the factors of production to produce a good or service
opportunity cost
the most desirable thing that you give up when making a decision
guns or butter
a decision the govt makes to either produce more social or military goods
thinking at marginq
looking at whether one more thing is going to help or hurt the economy
production possibilites graph
using a graph to make sure that you are utilizing both resources
economic system
the way a society decides to distribute their goods and services
factor payments
payments for providing a factor of production
safety net
programs and services the govt provides to help people in need
standard of living
level where you have economic success
market economy
economy where the people sell and exchange goods and services
centrally planned economy
economy where the govt controls what & how much to make and how to sell it
traditional economy
rituals, habits and customs where you're the same thing all your life and your kids are the same thing
mixed economy
market economy, centrally planned economy, and traditional economy combined
free enterprise
idea that capitol goods should be privately owned by individuals or a corporation
laissez-faire
concept that govt shouldnt be involved in regulating & monitering business
public interest
concern of its people making sure interest of people are being looked after as a whole
interest group
privately owned organizations that look out for the public interest of the corporation
public sector
govt being involved in the economic system, the transactions of the govt
private sector
no govt interference; private corps producing goods and services for their own profit
externality
the side effect of producing a good or service
business cycle
ups & downs of economic world that explains what is happening & what will happen
law of demand
the more that we demand there will be a set quantity that the suppliers will have; the larger the demand, the lower the price
substitution effect
if prices go up & dont go down we suubstitute the product for something similar but cheaper
income effect
has an effect on demand; less income decreases demand; more income increse demand
complements
two goods that you have to buy together
elastic
if price goes up, demand changes significantly & you substitute
inelastic
a product that no matter what happens to the price, the demand for the product wont change
law of supply
the higher the price the more your willing to supply & the lower the price the less you willing to supply
fixed cost
price that doesnt change from month to month
variable cost
things that change in price from month to month
total cost
fixed cost and variable cost that it to makes the product
operating cost
cost it takes to operate a facility
subsidy
govt controlling one of the variable costs for the business
excize tax
discouraging supply, extra tax on a finished good or service
price ceiling
the maximum price on a finished good or service
price floor
the minimum price on a finished good or service
perfect competition
a number of different businesses produce the same product
economies of scale
cost of making an item will drop as you produce more
monopoly
one business/corp controls all aspects of producing a good or service
oligopoly
several companies working together to drive out competition
trust
several companies that come together to drive out competition
anti-trust laws
laws that limit & control businesses to create fair competition
investment
taking money & allocating it into an avenue that generates or saves moneyfor your future
mutual fund
pulls together the money of several investors & uses our money to buy stocks & bonds for that group of people
security exchange commission
monitor & police the transaction of the stock market
savings bond
way that the govt raises money
bull market
when the stock market is doing really well
bear market
when the stock market is doing bad
dow jones
an index of 30 corps; way of measuring how the stock market is doing
s&p 500
index of 500 of corps; larger and better measurements
nasdaq
more riskier than the other two; smaller index; more technological; more speculative
sole propietorship
business that is individually owned
partnership
when two or more people own a business
liabilty
legal binding to the debts that your business accumalates
asset
your possessions that you own of value; more assets you have the more money you're able to borrow
corporation
another type of business/org. owned by shareholders
horizontal merger
2 or more companies in the same industry merge
vertical merger
2 or more companies that merge together from different industries
cooperative
business org. owned & operated by a group of people seeking to benefit their own interest
non-profit organization
run & operated like any other business but not driven to gain any profits for personal gain
union
association of workers that work to gain better working conditions and wages
strike
workers of a union stop work
right to work law
states, counties, cities can create laws that make unions not mandatory
unskilled labor
labor that doesnt require any education or skills or technical training
semi-skilled labor
jobs that require some for of skill & education
skilled labor
something that requires training, apprentice program, education necessary
professional labor
highly educated, trained work force, college, master's degrees, phD's
commodity money
diamonds, cattle, gold, cole, anything that you can use to exchange goods & services
representatives money
an IOU
fiat money
the legal dollar bill and coins
federal reserve system
created a national set of 12 regional banks, responsible for holding money in reserve
federal deposit insurance corp
insures money in member banks up to $100,000
wampum
native american currency made out a conch & black mucle shelss, backbone for basis of our currency here in the US; connecticut set a value for these shells
savings & loans crisis
degregulation, more competition, high interest rates, and fraud were the causes; banks didnt have any money
fractional reserve
amnt of money that banks must keep in their vaults
sales tax
monetary value on a sold good or service
property tax
monetary amnt that home owners pay based on the value of their home
corporate income tax
tax copr. pay on their profits shareholders also pay
estate tax
looking at your worth, home, all your valuable things; a way of making sure the govt puts a tax on it
gift tax
a way of not paying taxes; you can be given a large amnt of money & not hav to pay taxes; up to $10,000
FICA
federal insurance contribution act; funding medicare & social security; we all pay these taxes
mandatory spending
govt has to fund or spend money on, medicare & social security
discretionary spending
govt spending/funding as what they think is fit; education & defense
gross domestic product (GDP)
the dollar value of all final goods & services w/in a country's border
intermediate goods
products used to make a final good for GDP
durable goods
things that are made that last a long period of timee for GDP
nondurable goods
products that dont last a long time
nominal GDP
measuring GDP from yr 1 to yr 2 using current prices
real GDP
measuring GDP from yr1 to yr 2 using constant prices
frictional unemployment
taking the time to find a job, best job possible
seasonal unemployment
people that choose careers that deal with seasons & when the season ends they dont work
structural unemployment
your skills/education doesnt keep up w/ your jobs demands or over-qualify
cyclical unemployment
deals w/business cycle, lay offs businesses do during bad economic times
full employment
no unemployment do to cyclical means;
under-employed
part time workers who wish to be full time; or people who dont like where they work & what they do
fiscal policy
govts way of stabilizing economy through taxing and spending money
expansionary policy
lowering taxes & spending more money
contractionary policy
a way of getting money out of the economy & combating inflation & spend less