Economic Vocabulary Words (Chapters 1-9)

Front 1

Natural resources that are used to make goods and services.

Back 1

Land

Front 2

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

Back 2

Labor

Front 3

The skills and knowledge gained by a worker through education and experience.

Back 3

Human Capital

Front 4

All human-made goods that are used to produce other goods and services; tools and buildings.

Back 4

Physical Capital

Front 5

An item that we desire but that is not an essential to survival.

Back 5

Want

Front 6

Something like air, food, or shelter that is neccessary for survival.

Back 6

Need

Front 7

An alternative we sacrifice when we make a decision.

Back 7

Trade-off

Front 8

Any human-made resource that is used to create other goods and services.

Back 8

Capital

Front 9

The most desirable alternative given up as the result of a decision

Back 9

Opportunity Cost

Front 10

Limited quantites of resources to meet unlimited wants.

Back 10

Scarcity

Front 11

Property owned by individuals or companies, not by the government or the people as a whole.

Back 11

Private Property

Front 12

Philosopher; The invisiable hand theory.

Back 12

Adam Smith

Front 13

A social and political philosophy based on the belief that democratic means should be used to evenly distribute wealth throughout a society.

Back 13

Socialism

Front 14

An expectation that encourages people to behave in a certain way.

Back 14

Incentive

Front 15

Economic system that combines the free market with limited government involvement.

Back 15

Mixed Economy

Front 16

Government aid to the poor.

Back 16

Welfare

Front 17

An economis side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

Back 17

Externality

Front 18

A shared good or service for which it would be impractical to make consumers pay individually and to exclude nonpayers.

Back 18

Public Good

Front 19

The study of the economic behavior and decision making if small units, such as individuals, families, and businesses.

Back 19

Microeconomics

Front 20

The struggle among producers for the dollars of consumers; the rivalry among sellers to attract customers while lowering costs.

Back 20

Competition

Front 21

Two goods that are bought and used together.

Back 21

Complement

Front 22

The total amount of monry a firm recieves by selling goods or services.

Back 22

Total Revenue

Front 23

Described demand that is not very sensitive to a change in price.

Back 23

Inelastic

Front 24

A good that consumers demand more of when their income increases.

Back 24

Normal Good

Front 25

A good that consumers demand less of when their income increases.

Back 25

Inferior Good

Front 26

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

Back 26

Demand

Front 27

A cost that rises or falls depending on how much is produced.

Back 27

Variable Cost

Front 28

The cost of producing one more unit of a good.

Back 28

Marginal Cost

Front 29

A measure of the way quantity supplied reacts to a chanhe in price.

Back 29

Elasticity of Supply

Front 30

The amount of good available.

Back 30

Supply

Front 31

A market in which goods are sold illegally.

Back 31

Black Market

Front 32

A maximum price that can be legally charged for a good or service.

Back 32

Price Ceiling

Front 33

A minimum price for a good or service.

Back 33

Price Floor

Front 34

The point at whic quantity demanded and quantity supplied are equal.

Back 34

Equilibrium

Front 35

Combination of two or more companies into a single firm.

Back 35

Mergers

Front 36

An agreement among firms to divide the market, set prices, or limit production.

Back 36

Collusion

Front 37

A market structure in which a few large firms dominate a market.

Back 37

Oligopoly

Front 38

A market dominated by a singlw seller.

Back 38

Monopoly

Front 39

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits.

Back 39

Partnership

Front 40

a formal contract to repay borrowed money with interest at fixed intervals.

Back 40

Bond

Front 41

A legal entity owned by individual stockholders.

Back 41

Corporationg

Front 42

Money and other variables belonging to an individual or business.

Back 42

Assets

Front 43

A business owned and managed by a singlw individual.

Back 43

Sole Proprietorship

Front 44

A settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides.

Back 44

Arbitration

Front 45

Someone who works in a industrial job, often in manufactouring, and who recieves wages.

Back 45

Blue-Collar Workers

Front 46

An organized work stoppage intended to force an employer to address union demands.

Back 46

Strike

Front 47

Labor that requires specialized akills and training.

Back 47

Skilled Labor

Front 48

The wage rate that producer neither an excess supply of workers no an excess demand for workers in the labor market.

Back 48

Equilibrium Wage

Front 49

Vakue of outout produced.

Back 49

Productivity

Front 50

The theory that the completion of college indicates to employers that a job aplicant is intelligent and hard-working.

Back 50

Screening Effect