Economics Final Part III
Order by
35 terms
Terms | Definitions |
|---|---|
 cooperative | a jointly owned commercial enterprise (usually organized by farmers or consumers) that produces and distributes goods and services and is run for the benefit of its owners |
| sole proprietorship | a business owned and managed by a single individual |
| limited partner | An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment. |
| general partner | partner who actively manages a firm and who has unlimited liability for its debts |
| dividend | share of the profits from the business |
| asset | anything of value that a firm has legal claim |
| bond | a certificate that promises to repay the money loaned, plus interest, on a certain date |
| franchise | the right or license granted by a company to an individual or group to market its products or services in a specific territory |
| marginal costs | the extra cost of producing one more unit of output |
| variable cost | a cost that rises or falls depending on how much is produced |
| profit | the amount of money left over after all the costs of production have been paid. |
| wage rate | the price of labor |
| labor union | an organization that seeks to increase wages and improve working conditions of its members |
| taft-hartley act | allowed states to outlaw the "closed shop" unions, boycotts by unions; allowed the pres to call for an 80 day cooling period before a strike |
| downsizing | reducing a company in size by laying off workers and managers to become more efficient, less costly, and more productive |
| global competition | BIG FAT DICK 8==============D |
| barter economy | system in which one set of goods or services is exchanged for another |
| double coincidence of wants | situation resulting when each party to a transaction wants exactly what the other person has to offer, allowing a direct exchange of goods |
| money | anything that serves as a medium of exchange, a unit of account, and a store of value |
| face value | the stated denomination on paper money or coins |
| checking account | A bank account from which payments can be ordered by a depositor |
| reserve requirement | This is the percentage of their deposits that member banks must keep available in a Federal Reserve Bank. |
| open market operations | buying and selling government securities by the Fed |
| discount rate the interest rate the fed charges a member bank for a loan | the interest rate the fed charges a member bank for a loan |
| federal funds rate | interest rate banks charge each other for loans |
| demand-side inflation | an increase in the price level that originates on the demand side of the economy |
| supply-side inflation | an increase in the price level that originates on the supply side of the economy |
| deflation | a decrease in the price level |
| full employment | situation that exists when the official unemployment rate equals the natural employment rate |
| frictional unemployment | refers to workers who have lost their jobs because of changing market |
| structural unemployment | unemployment that occurs when workers' skills do not match the jobs that are available |
| specialize | to do only one thing |
| comparative advantage | the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers. |
| economic integration | when nations combine to form either a common market or a free-trade area |
| NAFTA | North American Free Trade Agreement; allows open trade with US, Mexico, and Canada |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.