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83 Cards in this Set

  • Front
  • Back
The study of how people seek to satisfy thier needs and wants by making choices
Economics
physical objects such as clothes or shoes
goods
actions or activities one person performs for another
services
limited quantities of resources to meet unlimitied wants
scarcity
ambitious leadrer who combines land,labor, and capital to create and market new goods or servies
entrepreneur
an alternative we sacrafice when we make a decision
trade-off
the most desireable alternative given up as the result of a decision
opportunity cost
a curve that shows alt. ways to use an economys resources
productions possibilities curve
the line on a productions possibilities graph that shows the max. possible output for a specific economy
productions possibilities frontier
using fewer resources than an economy is capable of using
underutilization
the meathod used by a society to produce and ditribute goods and services
economic systems
gov. programs that protect people experiencing unfavorable economic conditions
safety net
the concentration of the productive efforts of individuals and firms on a limited number of activities
specialization
an arrangement that allows byers and sellers to exchange things
market
a person or group of people living in the same residence
household
an organization that uses resources to produce a product, which it then sells
firm
an expectation that encourages people to behave in a certain way
incentive
market in which firms purchase the factors of production from households
factor market
the market in which households purchase the goods and services that firms produce
product market
a social and political philosphy based on the belief that democratic means should be unsed to evenly distribute wealth throughout a society
socialism
a political system characterized by a certainly planned economy with all economic and political pwer resting in the hands of the central activity
communism
the doctrine that states that gov. generally should not intervene in the albility to own it
laissez faire
the desire to own something and the ability ro own it
demand
when consumers react to an increase in a goods price by consuming less of that good and more of other goods
subsitution effect
the change in comsumption resulting from a change in real income
income effect
a table that lists the quantity of a good a person will buy at each diff. price
demand schedule
a graphic represntation of a demand schedule
demand curve
2 goods that are bought and used together
complements
goods used in place of each other
subsitutes
a good that consumers demand more of when their incomes increase
normal good
a measure of the ways quantity supplied reacts to change in price
elasticity of demand
demand that is very sensitive to a change in price
elastic
demand that is not very sesitive to a chahnge in price
inelastic
the amount of goods availble
supply
the amount of a supplier is willing and able to supply at a certain price
quantity supplied
a chart that lists how much of a good supplier will offer at different prices
supply schedule
a graph of the quantity supplied of a good at diff. prices
supply curve
a graph of the quantity supplied of a good by all suppliers at diff. prices
market supply curve
a measue of the way quantity supplied reacts to a change in price
elasticity of supply
an independent agency of the gov. that regualtes financial markets and investment companies.
S.E.C (Securities and exchange commission)
the change in output from hiring one additional unit of labor
marginal product of labor
a level of production in which the marginal product of labor increases as the number of workers increases
increasing marginal returns
a level of production in which the marginal product of labor decreases as the number of workers increases
diminishing marginal returns
fixed costs plus variable costs
total cost
the cost of producing one more unit of a good
marginal cost
cost of operating a facility such as a store or factory
operating cost
a gov. payment that supports a business or market
subsidy
tax on the production or sale of a good
excise tax
est. formed to carry on a commercial enterprise
business organization
auth. to start a business issued by the local gov.
business licence
law in a city/town that designates seperate areas for residency and for business
zoning law
legally bound obligation to pay debts
liability
payment other than wages or salaries
fringe benefit
partnership agreement
articles of partnership
act ordering common ordership interests,profit and loss sharing, and shared management resonsibilities in a partnership
Uniform Partnership Act
cert. of ownership in a corporation
stock
formal contract to repay borrowed $ w/an interest at fixed intervals
bond
portion of corporate profits paid out to stockholders
dividend
business combination merging more that 3 businesses that make unrelated products
conglomerate
all nonmilitary people who are employed or unemployed
labor force
temporary jobs or part time jobs
contigent employmnet
value of output produced
productivity
unofficial,invisible barrier that prevents women and minorities from advancing in business dominated by white men
glass ceiling
organization of workers that tries to improve working conditions,wages,and benefits for its members.
labor union
a measure that bans mandatory union membership
right-to-work
process in which union and company represenatives meet to negotiate a new labor contract
collective barganing
act of redirecting resources from being consumed today so that they may create benefits in the future
investment
claim on the property or income of a borrower
financial asset
fund that pools the savings of many indivduals and invests this money in a variety of stocks,bonds,and all financial assets
mutual fund
spreading out of investments to reduce risks
diverseification
a collestion of financial assets
portfolio
an investment report to potential inventors
prospectus
practice of making high-risk investments w.borrowed money in hopes of getting a big return
speculatino
the collapse of the stock market in 1929
great crash
a lower-rated, potentially higher-paying bond
junk bond
portion of a stock
share
diff. between a higher selling price and a lower purchase price, resulting in a financial gain for the seller.
capital gain
diff. betweeen a higher selling price and a lower selling price, resulting in a financial loss for the seller.
capital loss
division of a single share of stock into more than one share
stock split
business that specializes in trading stocks
brokerage firm
american market for OTC securities
NASDAQ
struggle among producers for the dollars of consumers; rivalry among sellers to attract customers while lowering costs
competition
a market for buying and selling stock
stock exchange