Term
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Definition
| supply that is relatively unresponsive to changes in price; the percentage change in quantity supplied by producers is greater than the percentage change in price |
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Term
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Definition
| a general increase in the price of goods and services; may be caused by an increase in production costs or increases in demand for goods and services |
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Term
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Definition
| property or money received from an estate or through a will |
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Term
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Definition
| a new and better way to do something |
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Term
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Definition
| resources used to produce a good or service; also called factor input or factor of production |
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Term
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Definition
| required payments of equal amounts, every month until the loan is paid in full |
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Term
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Definition
| protection against the risk of large losses; purchased by paying a relatively small price called the premium; types include automobile, homeowners, life, health, disability to protect against cost associated with losses such as auto accidents, damage to homes, death or illness |
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Term
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Definition
| dependence on others for goods and services; occurs as a result of specialization; two or more persons, regions or countries that depend upon each other to supply goods and/or services to satisfy their wants and needs; increases as division of labor and/or specialization increase Example: Wisconsin specializes in the production of cheese while Florida specializes in the production of citrus products. Since neither state wants to exist solely on its own output, they trade and become interdependent |
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Term
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Definition
| the amount of money paid to a customer by the bank for keeping the customer's money; the amount of money paid to the bank by the customer when the customer borrows money from the bank; also called carrying charge or finance charge |
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Term
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Definition
| interest payments expressed as a percentage of principal amount |
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Term
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Definition
| goods that will be further processed for resale; Example: Sheet metal and glass are intermediate goods by the auto industry and processed further into automobiles |
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Term
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Definition
| exchange of goods and services that takes place between nations |
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Term
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Definition
| a supply of a product or products that a business has "on hand" |
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Term
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Definition
| in a given situation two factors will respond in the opposite direction to one another; Example: When the price of coffee went up, the amount of coffee consumed went down |
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Term
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Definition
| the use of money to produce income or profit |
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Term
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Definition
| a bank account shared by two or more people who are official signers on the account |
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Term
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Definition
| one factor of production; the human input into the production process; workers hired by a business whose efforts are directed toward production of goods and/or services in exchange for which they are paid a wage or salary; Both physical and mental effort are considered |
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Term
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Definition
| the total of all people over 16, working or looking for work |
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Term
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Definition
| an association of workers who are organized to bargain collectively with employers |
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Term
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Definition
| a policy that calls for government not intervening in business or economic activities; French term literally meaning “let do” or “allow to act” |
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Term
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Definition
| one factor of production; the natural resources available for production; includes real estate (earth) and all natural resources such as mineral deposits, water and timber |
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Term
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Definition
| economic principle stating that the opportunity cost of additional units of a good tend to increase as the society attempts to produce more of the good |
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Term
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Definition
| person or financial institution that loans money to another |
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Term
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Definition
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Term
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Definition
| ability to convert an asset into cash easily and quickly |
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Term
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Definition
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Term
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Definition
| negative difference between cost and sale price; see profit |
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Term
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Definition
1. the process of organizing and utilizing resources to produce goods and/or services;
2. the group or individual in a business that does the organizing of resources to produce goods and/or services |
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Term
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Definition
| the skill needed to organize and utilize resources, including human resources, to produce goods and/or services; see entrepreneurship |
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Term
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Definition
| the extra utility or satisfaction one receives from consuming one more unit of a good or service |
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Term
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Definition
| a specified category of potential buyers; any setting where buyers and sellers exchange goods, services, resources and currencies |
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Term
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Definition
| the price at which the quantity that people are willing to buy is equal to the quantity sellers are willing to offer that is, there is neither shortage nor surplus ; see equibilirium price |
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Term
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Definition
| an economic system where most goods and services are exchanged through private transactions by private household and businesses; Buyers and sellers making exchanges in private markets determine prices |
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Term
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Definition
| situation occurring when there is equality between quantities supplied and demanded and the price at which goods are being exchanged has no tendency to change |
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Term
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Definition
| the price at which a good or service is selling in the open market; also called market value |
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Term
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Definition
| a method of coordinating economic activity that relies on the individual choices of competing buyers and |
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Term
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Definition
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Term
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Definition
| a fixed wage paid periodically for regular work Example: My salary is $400 per week. see wage |
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Term
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Definition
| the transfer of ownership rights or title to property or goods and services |
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Term
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Definition
| taxes paid on the goods and services people buy the opposite of spend |
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Term
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Definition
| the portion of (after tax) income that is not spent for consumer goods or services |
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Term
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Definition
| an account in a financial institution where a person deposits that part of his/her income which he or she chooses not to spend at the present time; These institutions usually pay interest on money in savings account. |
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Term
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Definition
| resources (used to produce goods and services) that are short in supply, relative to unlimited human wants |
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Term
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Definition
| the condition of not being able to have all the goods and services that one wants |
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Term
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Definition
| Because resources are limited, relative to human wantsand needs, we have to make choices. Example: Shall we use our limited supply of oil for gasoline (transportation) or for producing heat for homes and power for factories? |
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Term
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Definition
| regular and predictable variations in the level of some economic activity over the period of a year; also called seasonal variations; Example: Youth unemployment is seasonally high during the summer. |
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Term
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Definition
| stocks and bonds collectively |
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Term
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Definition
| the price asked for and paid for a good or service in the market |
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Term
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Definition
| an additional cost or fee for the privilege of purchasing a good or service on credit; see minimum balance |
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Term
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Definition
| activities that can satisfy people's wants or needs |
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Term
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Definition
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Term
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Definition
| a piece of paper that represents partial ownership of a corporation |
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Term
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Definition
| marketplace where stocks are bought and sold |
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Term
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Definition
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Term
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Definition
| action used by labor and labor unions in which workers voluntarily stop working to bring pressure on their employers to meet their demands. |
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Term
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Definition
| producing some quantity of output at least cost, in terms of alternative output sacrificed |
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Term
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Definition
| an increase in a nation’s total output of goods and services; usually measured in per capita terms |
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Term
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Definition
| excess of revenue over all costs of production, including a normal profit; the return a business makes on invested capital, minus the cost of capital, times the amount of invested capital; see normal profit |
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Term
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Definition
| the four questions that every society must answer as it allocates its scarce resources to meet the unlimited wants of its people: WHAT will be produced? (composition of output) HOW will it be produced? (productive methods) FOR WHOM is the output intended? (allocation of final goods and services) HOW MUCH will be produced (How large is the GDP? How large should it be?) The first three are microeconomic questions and the last is the macroeconomic question. see microeconomics and macroeconomics |
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Term
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Definition
| payment to a factor of production in excess of the minimum required to keep that factor in the particular line of production |
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Term
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Definition
| 1. the absence of large changes in economic activity 2. a situation with steady growth of production, employment and standard of living with no change in the price level |
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Term
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Definition
| the way a society organizes the production, consumption and distribution of goods and services |
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Term
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Definition
| not wasteful, particularly of resources such as money |
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Term
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Definition
| the study of how people make choices about the best use of scarce resources |
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Term
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Definition
| making the best possible use of scarce resources; producing the largest output with the least input |
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Term
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Definition
| demand that is relatively responsive to changes in price; occurs when the percentage change in quantity demanded by buyers is greater than the percentage in change in price |
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Term
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Definition
| supply that is relatively responsive to changes in price; occurs when the percentage change in quantity that producers are willing to supply is more than the percentage change in price |
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Term
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Definition
| the degree of consumer responsiveness to changes in price; Demand is elastic when a change in price results in a relatively greater (more than proportional) change in the quantity of a good that people will buy. |
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Term
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Definition
| the degree of sellers’ responsiveness to changes in prices; Supply is elastic when a change in price results in a relatively greater (more than proportional) change in the quantity offered for sale. |
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Term
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Definition
| a government prohibition against the shipment of certain products to a particular country for economic or political reasons; a government order imposing a trade barrier |
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Term
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Definition
| a sudden, urgent, unexpected occurrence requiring immediate activity (response) |
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Term
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Definition
| something that can produce heat, light and/or motion |
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Term
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Definition
| one who organizes and manages resources—including labor—to produce goods and/or services and who assumes the risks of a business for the sake of the possible profit |
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Term
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Definition
| assuming the risks of owning your own business; one of the factors of production; see factors of production and managerial ability |
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Term
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Definition
| the price at which the quantity demanded by buyers equals the quantity supplied by sellers; see market clearing price |
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Term
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Definition
| the basic monetary unit of most members of the European Union (introduced in 1999) |
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Term
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Definition
| family of democratic European countries, committed to working together for peace and prosperity; In the early years, much of the co-operation between EU countries was about trade and the economy, but now the EU also deals with many other subjects of direct importance for our everyday life. The historical roots of the European Union lie in the Second World War. May 9 1950 is the "birthday" of what is now the EU and is celebrated annually as Europe Day. Initially, the EU consisted of six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Denmark, Ireland and the United Kingdom joined in 1973, Greece in 1981, Spain and Portugal in 1986, Austria, Finland and Sweden in 1995. In 2004 the biggest ever enlargement takes place with 10 new countries joining. |
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Term
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Definition
| trading a good or service for another good or service or for money; may be accomplished with or without money; see barter and trade |
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Term
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Definition
| 1. the price of currency of one country in terms of the currency of another country; 2. the rate at which one currency can be exchanged for the currency of another country; The rate of exchange can be used to convert prices from one currency standard to another. |
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Term
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Definition
| the outlays of cash in a given period; distinguished from costs which include items not involving current cash outlays |
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Term
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Definition
| costs requiring cash outlays payable to persons outside the firm |
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Term
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Definition
| selling our country's products to other nations; the item being sold |
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Term
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Definition
| benefits accruing to persons outside the market transaction; also called an external economy or spillover benefit; Example: A large tree in your yard shades the sidewalk, a benefit to the entire neighborhood. |
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Term
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Definition
| costs imposed on persons who are not involved in the production or use of a good or service; sometimes called a spillover cost or external diseconomy; Example: Air pollution from a factory is a cost imposed on everyone in the vicinity. |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| effects, good or bad, on parties not directly involved in the production or use of a good or service |
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Term
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Definition
| land, labor, capital; also called resources; see factors of production |
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Term
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Definition
| payments made to the owners of the factors of production—wages to labor; rent to owners of land or capital goods; interest to those who have loaned the money to buy capital goods or land; and profit to the owners of the business |
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Term
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Definition
| resources used by businesses to produce goods and services; The four are land, labor, capital and entrepreneurship or managerial ability. |
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Term
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Definition
| Federal Deposit Insurance Corporation – the federal government agency that insures bank depositors' accounts FICA Federal Insurance Contributions Act—name of the |
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Term
| FEDRAL COMMUNICATION COMMISION |
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Definition
| the federal agency that regulates interstate communications including the right to operate radio and TV stations |
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Term
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Definition
| the government of a nation; Example: the government of the United States; see government |
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Term
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Definition
| the government of a nation; Example: the government of the United States; see government |
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Term
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Definition
| paper currency; printed and distributed by the Federal Reserve Bank of the United States the value of which is guaranteed by the US government |
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Term
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Definition
| a nationwide network of 12 banks, controlled by the Federal Reserve Board (the Fed), which do not deal with the public but implement Federal Reserve policies; They act as depositories for member banks. |
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Term
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Definition
| Federal Trade Commission—the federal government agency charged with maintaining competition by preventing “unfair competition” or the development of monopolies |
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Term
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Definition
| a charge to the customer by the bank for a service such as writing a check or using an ATM machine |
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Term
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Definition
| the gross domestic product expressed in dollars of a constant value; This calculation allows GDP of various years to be compared without the distortion of inflation or deflation. |
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Term
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Definition
| purchasing power of money income; the quantity of goods and services that can be bought with money income; see money income Note: If one’s money income doubles and the prices double at the same time, real income has not changed. |
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Term
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Definition
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Term
REAL VS. NOMINAL
MEASUREMENT |
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Definition
| Nominal values are measured using current market MEASUREMENT prices whereas real values are nominal values adjusted for the effects of inflation or deflation. |
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Term
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Definition
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Term
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Definition
| a contraction in the economy; a reduction in real GDP over at least 2 quarters of the year |
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Term
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Definition
| a tax that takes a larger percentage of the income of low-income people than of high-income people; Example: People with low incomes pay a higher percentage of their income in sales taxes than do those with high incomes. |
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Term
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Definition
| a government agency responsible for preparing and administering government regulations; may also be responsible for research on changing conditions in their appointed area, for suggesting new legislation, for setting standards of compliance and for determining violations and setting penalties; may be administered by either elected or appointed officials |
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Term
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Definition
| natural resources that are not used up in consumption (solar energy, wind or wave power) or that reproduce themselves, wholly or in part (timber) |
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Term
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Definition
| 1. money payments for the use of a house, land or some other property or space; 2. payment to those who supply the factor of production, land. 3. return to a fixed factor of production |
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Term
| TRADITION DIRECTED ECONOMY |
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Definition
| a method of coordinating economic activity that relies on generally accepted historical practices, beliefs, customs and religious traditions to guide economic choices |
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Term
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Definition
| other payments to a person that are not payments for the use of a resource in production; Examples: social security, welfare payments |
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Term
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Definition
| the act of moving goods and services from one geographic location to another |
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Term
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Definition
| a federal law that requires creditors (lenders) to tell the annual percentage rate, finance charge and deferred payments for an item purchased on credit; also called Regulation Z |
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Term
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Definition
| the situation in which people are willing and able to work at current wages, but do not have jobs |
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Term
UNEMPLOYMENT
COMPENSATION |
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Definition
payments made to workers who are unemployed and who meet the requirements of the law to qualify for such payments; The requirements usually are:
1. that the worker has worked in employment that is :”covered” by the law, 2. that the worker be willing and able to take employment offered him,
3. that the worker did not leave his previous place of employment voluntarily, 4. that an initial period (the “waiting period”) of unemployment has elapsed before compensation is due |
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Term
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Definition
| the percent of the labor force not employed; see labor force |
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Term
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Definition
| It is the nature of human wants to be unlimited in total. When basic needs for food, clothing and shelter are met, people tend to develop wants for additional goods and/or services. see wants |
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Term
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Definition
| United States Department of Agriculture; the federal agency concerned with regulating the quality of agriculture output |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| a period in which the economy is experiencing both high unemployment and high inflation |
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Term
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Definition
| the per capita level of production of goods and services achieved in an economy; computed by dividing the GDP by the population |
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Term
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Definition
| government of a state; Example: the government of the State of Florida; see government |
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Term
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Definition
| share of ownership in a corporation; Corporations sell stock to acquire funds to operate or expand the organization. The two types are common and preferred. |
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Term
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Definition
| a predictable long-term pattern of alternating periods of economic growth (recovery) and decline (recession), characterized by changing employment, industrial productivity, and interest rates; also called economic cycle |
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Term
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Definition
| a professional who systematically manages the tasks of the business to achieve success |
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Term
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Definition
| 1. one of the factors of production; 2. a man-made resource used in the production of goods and services; includes factories, equipment, machinery, etc.; 3. durable goods used to produce final goods and services; also called capital goods or capital resources |
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Term
|
Definition
| addition to the stock of capital goods; also called capitalgrowthCAPITAL GOODS tools, machinery, buildings, etc. used to produce final goods and services seecapital goods |
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Term
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Definition
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Term
|
Definition
| goods made by people and used to produce other goodsand services; also called intermediate goods |
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Term
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Definition
an economic system based on private ownership ofproperty or productive resources that owners may use toproduce goods or services and receive the profits orlosses from this use; system characterized by
competition, the profit incentive and free markets |
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Term
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Definition
| interest paid to a business when the firm allows one topurchase goods or services on credit; also calledinterest or finance charge |
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Term
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Definition
| an organization of producers designed to limitcompetition between members usually by restrictingoutput to raise prices;Example: OPEC is a petroleum cartel. |
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Term
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Definition
| coins, currency, or the equivalent;Examples: money orders, personal checks, cashier’schecks |
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Term
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Definition
| the full price one pays for a good or service if one payswith cash; see credit price |
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Term
|
Definition
| a written order to a bank to pay a certain amount ofmoney from a person’s account to a business or someother person |
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Term
|
Definition
a bank, credit union or other financial institution
account that is available on demand; the owner of the
account writes a check that is treated like currency in
the market;
Note: Demand deposits—the amount of money
deposited in checking accounts—are one component
(part) of the money supply. |
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Term
|
Definition
| a model of an economy showing the interactionsbetween households and businesses as they exchangegoods and services and resources in markets |
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Term
|
Definition
| a model of an economy showing the interactionsbetween households and businesses as they exchangegoods and services and resources in markets |
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Term
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Definition
| the government of the local town or incorporated municipality;Example: the government of the City of Lakeland |
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Term
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Definition
| 1. one of the components (parts) of the money supply;2. a piece of metal stamped with a design and issued tothe public to be used as money |
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Term
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Definition
| assets that can be pledged to obtain a loan |
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Term
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Definition
| by a committee or union (representing theBARGAINING employees of a business or industry) with an employeror group of employers to arrive at agreements regardingwages, hours or conditions of employment for allemployees |
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Term
|
Definition
| a model of an economy showing the interactionsbetween households and businesses as they exchangegoods and services and resources in markets |
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Term
|
Definition
| an economy in which decisions are made by thegovernment: what goods and services to produce, whatproductive methods to use, how to allocate resources,how to distribute output and what prices tocharge |
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Term
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Definition
| a group of countries that agree to eliminate all tariffs (orother restrictions) on international trade between eachother and to have a common external tariff onallproducts coming from non-membersCOMMERCIAL BANK a financial institution whose main function is toacceptdeposits and make loans |
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Term
|
Definition
| interest paid upon money deposited in an account andalso on all the interest already earned by the deposit;see simple interest |
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Term
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Definition
| the wise use of natural resources |
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Term
|
Definition
| to buy and/or use goods and/or services |
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Term
|
Definition
| people or businesses whose wants are satisfied by usinggoods and services; those who buy and make final useof goods and services |
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Term
|
Definition
| tangible objects—food, automobiles, shoes, etc.—that |
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Term
|
Definition
| satisfy consumer wants and/or needs. |
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Term
|
Definition
| productive acts of labor that do not result in tangible |
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Term
|
Definition
| productive acts of labor that do not result in tangible |
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Term
|
Definition
| the consumer determining the types and quantities of |
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Term
|
Definition
|
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Term
|
Definition
| the act of buying and/or using goods and services to SATISFY WANTS AND NEEDS |
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Term
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Definition
| a special form of corporation that differs from normal |
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