Economics Terms For Unit Tests 1-8

Front 1

the financial gain made in a transaction

Back 1

profit

Front 2

the study of how people seek to satisfy their needs & wants by making choices

Back 2

economics

Front 3

the concentration of the productive efforts of individuals and firms on a limited number of activities

Back 3

specialization

Front 4

the effort that people devote to a task for which they are paid

Back 4

labor

Front 5

the process used to produce a good/service

Back 5

technology

Front 6

a person who buys goods and services

Back 6

consumer

Front 7

an activity performed for others for money, such as teaching or selling

Back 7

service

Front 8

an arrangement that allows buyers and sellers to exchange things

Back 8

market

Front 9

goods that are bought and used together (ex. shoes & socks)

Back 9

complimentary

Front 10

the desire to own something and the ability to pay for it

Back 10

demand

Front 11

a diagram that shows the relationship between two or more sets of things

Back 11

graph

Front 12

to cross at a point or coordinate

Back 12

intersect

Front 13

people who are responsible for directing & managing a business

Back 13

executives

Front 14

stocks or bonds

Back 14

securities

Front 15

the price that businesses pay workers in exchange for labor

Back 15

wages

Front 16

a person/business who is owed money

Back 16

creditor

Front 17

a process by which an outside party decides the terms of an agreement that must be accepted by both sides in a labor dispute

Back 17

arbitration

Front 18

a business that has no competition; it produces a unique product or service

Back 18

monopoly

Front 19

a share of ownership in a corporation

Back 19

stock

Front 20

the use of machinery, often computerized, in place of human labor

Back 20

automation

Front 21

a work stoppage by labor to win terms of an agreement

Back 21

strike

Front 22

a written guaranty that products or services do what they are supposed to do

Back 22

warranty

Front 23

a business arrangement in which a large business chain, such as a fast-foof company, allows another person or group
to operate an outlet using its name to sell goods/services

Back 23

franchise

Front 24

the promise to pay later for the purchase of goods/services without the actual transfer of money

Back 24

credit

Front 25

to take out; as in money from an account

Back 25

withdraw

Front 26

property or cash offered by a borrower as a guarantee that a loan will be repaid

Back 26

collateral

Front 27

an illegal form of advertising

Back 27

bait & switch

Front 28

deliberately making a false description of a product to induce a sale

Back 28

fraud

Front 29

a savings account that requires money to be left in the account for a period of time

Back 29

time deposit account

Front 30

the thing/things that come first in order of importance

Back 30

priority/priorities

Front 31

in a loan, the original amount of money borrowed

Back 31

principal

Front 32

a written guaranty that products/services do what they are supposed to do

Back 32

warranty

Front 33

a breakdown of how income is used; a personal plan for spending income

Back 33

budget

Front 34

units of value in money

Back 34

denominations

Front 35

a kind of bank that is owned by members who belong to a certain company or group

Back 35

credit union

Front 36

a set of facts, rules, etc. arranged to show a plan

Back 36

system

Front 37

a bank whose functions include controlling the nation's money supply

Back 37

central bank

Front 38

the value of all currency and checking account balances in a country

Back 38

money supply

Front 39

a situation in which many banks fail because they are not able to meet the demands of their depositors for cash

Back 39

bank panic

Front 40

a checking account

Back 40

demand deposit account

Front 41

the process in which the Federal Reserve transfers checks and money between banks

Back 41

check clearing

Front 42

the direct exchange of one good or service for another without the use of money; trade

Back 42

bartering

Front 43

illegally reproduced; fake; made to look like something expensive

Back 43

counterfeit

Front 44

easily carried or moved

Back 44

portable

Front 45

nonprofit organizations that accept donations such as money, goods, & volunteers' time, and then provides aid to needy people

Back 45

charities

Front 46

a type of inflation caused by the rising cost of resources such as labor & oil

Back 46

cost-push

Front 47

the minimum yearly income that a family must have in order to meet its basic needs

Back 47

poverty line

Front 48

unemployment that occurs when people are out of work for a part of the year because of the seasonal nature of their jobs.

Back 48

seasonal

Front 49

the lowest point of the business cycle

Back 49

trough

Front 50

a time period when GDP decreases for two quarters (6 months) in a row

Back 50

recession

Front 51

an increase in the average price of goods & services

Back 51

inflation

Front 52

a regular payment to a retired person by his/her former employer

Back 52

pension

Front 53

unable to pay debts

Back 53

bankrupt

Front 54

the amount of money a bank must keep in its vault or on deposit at the Fed to back up its customer's deposits

Back 54

reserve requirements

Front 55

a financial situation in which spending is greater than income or revenues

Back 55

budget surplus

Front 56

a tax on certain items "vice goods" such as tobacco, alcohol, & gasolne

Back 56

Excise Tax

Front 57

a basic economic policy that calls for noninterferece by the government in business matters.

Back 57

Laissez Faire

Front 58

an expense or cost

Back 58

expenditure

Front 59

the rate of interest charged by the Federal Reserve Bank to borrowing banks

Back 59

discount rate

Front 60

a financial situation in which spending is greater than income or revenues

Back 60

budget deficit

Front 61

tax dollars recieved by the government

Back 61

government revenue

Front 62

the Federal Reserve Bank program of increasing or decreasing the money supply to control inflation & unemployment

Back 62

monetary policy

Front 63

a country that depends mainly on agriculture instead of industry & has a lowr standard of living than developed countries (ex. some African/Asian countries

Back 63

developing

Front 64

the percentage of people in a population who can read & write

Back 64

literacy rate

Front 65

the policy of limiting trade with other countries to protect domestic industries

Back 65

protectionism

Front 66

a condition in which the value of a nation's exports is greater than the value of its imports

Back 66

trade deficit

Front 67

aid that one country gives to another in the form of money, capital resources, and food

Back 67

foreign aid

Front 68

a country that is highly industialized and has a higher standard of living than developing countries

Back 68

developed

Front 69

a tax on imports

Back 69

tariff

Front 70

a government policy that cuts off trade with certain countries

Back 70

embargo