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79 Cards in this Set

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  • Back
Corporation
a business chartered by a state or the federal government that enjoys limited liability and has unlimited life (open corporations have stocks that can be bought by anyone, while closed corporations have stocks that are not for sale to the general public)
Economics
the study of why people make one choice rather than another when buying and selling, spending and saving- explains how businesses are formed to satisfy different wants and needs
Exports
The goods and services that individuals and businesses in a country sell to foreign countries
Resources
the things that go into the making of goods and services (natural resources are things produced by the world around us; human resources are the people who put everything together to make goods and services; capital resources are machines, tools, and buildings used in the production of goods and services)
Market price
the price at which goods and services are sold; the point at which supply and demand curves intersect
Goods
the things of value that can be seen or touched
Variable expense
the expenses in a budget that are not the same each week or month
Free enterprise
another name for capitalism, the economic system of the United States
Luxuries
items that people buy that add to their enjoyment
Services
things of value that can neither be seen nor touched
Monopoly
a situation in which there is only one producer or seller of an item. And a fun game by parker brothers!
Consumers
those who buy or use goods and services
Lockout
occurs when management shuts down a plant where there is or might be a strike
Market economic system
an economic system in which decisions are made as the result of the actions of buyers and sellers
Copyright
A legal monopoly, granted by the government, giving exclusive rights to authors, artists, and composers to reproduce, perform, and sell their work
Producers
those who make a good or service
Producer
one who makes a good or service
Capitalism
an economic system in which the means of production are privately owned, and the what, how, and who questions are answered by the market
Supply
the quantity of goods and services offered at all prices
Private property
something of value owned by people
Limited liability
a corporation has a limited liability because there is no limit to the amount of money a proprietor or partner might lose
Demand
the quantity of an item that buyers would take at any and all prices
Overhead expense
expenses that must be paid regardless of how much or how little the company earns, fixed expenses
Public property
something of value owned by government
Merger
the acquisition or takeover of one company by another (horizontal merger is a combination of firms that sell similar products or services, a vertical merger is when a company acquires one of its suppliers, and a conglomerate merger is when two or more unrelated businesses combine)
Communism
an economic and political system in which all property is publicly owned, and the government makes all what, how, and who decisions
Subsidy
A payment by the government to individuals or firms in an industry
Socialism
an economic system that has both private and public ownership of the means of production, and the what, how, and who questions are answered both by government and private individuals- sometimes is a representative government
Pension
cash benefits, often for retirement
Command economic system
an economic system in which the what, how, and who questions are answered by the government
Balanced budget
A budget when the receipts are exactly equal to the expenditures- the input is exactly equal to the output
Mass production
the manufacture of large quantities of identical products using interchangeable parts
Patent
A grant issued by the federal government that gives inventors the sole right to manufacture, use and sell their inventions
Conspicuous consumption
spending that is done to impress other people
Profit
what remains of income after a business has paid all its costs of doing business- net earnings
Savings
that portion of personal or business income that is not spent
Income tax
A tax on the earnings of individuals and corporations
Two-tier wage system
occurs when new employees are paid lower wages than senior employees are
Mediation
a method of settling a dispute that calls a third party, a mediator, to help bring the two parties together, is not binding
Wage
a payment for work performed
Arbitration
a method of settling a dispute that calls a third party, an arbitrator, to make a decision that is binding for both sides
Necessities
those goods and services that people need to exist
Collective bargaining
the negotiations between union and management representatives over salaries, benefits, and working conditions
Imports
The goods and services that individuals and businesses in a country purchase from foreign countries
Charter
the license given to a corporation that divides the business into many parts or shares
Stock exchange
marketplaces in which the stocks of certain corporations can be bought and sold
Bear market
markets where the price of stock is expected to decrease or fall- pessimistic view
Consumer Price Index
an index that measures changes in the cost of living- Social Security is tied to this
Capital gain
the profit made after stock is sold
Inflation
a rise in the price of goods and services
Medicare
provides hospital and medical care benefits to elderly and disabled persons covered by Social Security
Stockholders
people who own shares of stock
Sole proprietorship
a business that is owned and run by one individual, the proprietor
Recession
a phase in the business cycle characterized by a decline in spending by businesses and consumers and an increase in unemployment
Excise tax
A tax on the manufacture or sale of a specific good or service
Income
payments received- the money that a person is paid
Automation
production in which machines are operated by other machines
Board of directors
the representatives elected by stockholders to oversee business operations and look after the interests of the stockholders
Union
an association of workers seeking to improve wages and working conditions for its members
Craft union
membership in these unions was restricted to skilled workers in one particular craft or trade
Investments
refers to the purchase of property, or other items, in the hope that in time it will increase in value- it also refers to business spending
Closed shop
a practice of management that required all employees to be union members before they could be hired
Assembly line
a method of mass production using interchangeable parts that was first used by Henry Ford to produce the Model T
Injunction
a court order
Consumption
the spending for consumer goods and services
Bull market
markets where the price of stock is expected to increase or rise- optimistic view
Protective tariff
Raises the price of the imported goods high enough to discourage many Americans from buying them
Depositor
people who deposit their savings in banks for protection and interest that the banks pay
Credit
the advance of money in exchange for a promise to repay at a specified time
Money
anything generally accepted in payment for goods and services
Budget
a plan for spending and saving income
Wagner Act
an act of Congress that gave workers the right to form or join any union of their own choice, and the right to strike- it also provided the right for unions to bargain collectively
Insurance
a method of protection against financial loss by sharing the risk with others
Wages
a payment for work performed
Interchangeable parts
an idea created by Eli Whitney, this is the underlying principal of mass production
Barter
a system in which people exchange a good or service that they have for one that they need
Fixed expense
expenses that must be paid each week or month
Social Security
benefits that are paid to people who have contributed to the programs during their working years, the benefits include pensions, monthly payments, and unemployment insurance programs
Sales tax
Charges one rate for a large number of items- a tax on all items except unprepared food (from the grocery store)