Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

45 Cards in this Set

  • Front
  • Back
the type of unemployment that consists of workers who have no job because their jobs only exist during certain parts of the year
Seasonal unemployment
the type of unemployment that consists of workers whoe skills or abilities are no longer in demand
Structural Unemployment
the type of unemployment that consists of workers who are between jobs, most of which who have chosen to be unemployed
Frictional Unemployment
the type of unemployment that consists of workers who have given up looking for a job because they have little skill or ability and no chance for advancement
Discouraged Worker
the type of unemployment that consists of those workers who have lost their jobs due to recession or a downturn in the economy
Cyclical Unemployment
CPI stands for
Consumer Price Index
reporting GDP without adjusting for inflation
Nominal Value
is the measure of the value of production by measuring the money that a business takes in
Income Approach
the result of the demand for goods and services exceeding supply
Demand Pull
is measuring production by measruing spending
the tools that economists use to determine where in the business cyle the economy is
Leading Indicators
reporting the GDP adjusting for inflation
Real Value
when prices go up because there has been an increase in the costs of production
Cost Push
the interest rate charged by the Federal Reserve to banks
Discount Rate
the interest rate that banks charge to their customers
Prime Lending Rate
when a firm continues even if its owner dies
Unlimited Life
the governmental policy of "hands off" the economy
Laissez Faire
a unit of ownership of a firm
the idea that customers determien what products will be produced by showing demand in the market
Consumer Sovereignty
sharing in the profits of a firm that you have ownership in
the expenses that must be paid no matter how many products are produced
Fixed Cost
the legal term for the owners beign responsible for all debts incurred by the firm
unilimited liability
the payment for the use of a resource that belongs to someone else
the term that Adam Smith gave to the forces that guide the marketplace
invisible hand
a loan to a firm
the most common type of business organization in the United States
Sole Proprietorship
when each additional unit of a product is less useful to you than the one that came before it
Diminishing Marginal Utility
means that a business only exists as long as the owners does
limited life
governmental restricts in the marketplace
Consumer Protection
the expenses that change with the number of products produced
Variable Cost
the profits made when you sell your stock
Capital Gains
the legal term for the owners not being responsible for the debts incurred by the firm
Limited Liability
the payment for using someone else's money
says that people will buy more of a product at a lower price than they will buy at a higher price, if nothing else changes
Law of Demand
those things desired that are not needed for physical survival
the quantity of products that a firm is willing to sell at a particular price
the limited resources relative to the wants for goods and services
the willingness to buy a product at a particular price
the value of the sacrificed alternative
Opportunity costs
intangible things; things that people do
states that producers are willing to offer more products for sale at a higher price than they would be willing to sell at a lower price
Law of Supply
the things necessary for physical survival
the study of the decision involved in priducing, distributing, and consuming goods and services
tangible things; physical objects
a set of rules that governs what goods and services to proeduce, how to produce them, and for whom they are produce. It also decides how to distribute the resource to satisfy its people wants.
Economic System