115 terms

praxis economics

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Account
a record of money deposited or withdrawn from a bank
Asset
Something of monetary value owned by an individual or organization.
Bank
a business that provides money services, such as cashing checks, making loans, and paying interest on accounts
Barter
to trade goods and services without using money
Bond
A certificate of indebtedness issued by a government or publicly held corporation, promising to repay borrowed money at a fixed rate of interest and at a specified time
Account
a record of money deposited or withdrawn from a bank
Asset
Something of monetary value owned by an individual or organization.
Bank
a business that provides money services, such as cashing checks, making loans, and paying interest on accounts
Barter
to trade goods and services without using money
Bond
A certificate of indebtedness issued by a government or publicly held corporation, promising to repay borrowed money at a fixed rate of interest and at a specified time.
Budget
a plan showing how income is to be spent
Budget Deficit
Referring to national budgets, it occurs when government spending is greater than government income in a given year.
Business Cycle
A period during which production or eco¬nomic activity expands, then contracts for several quarters or more, and then expands again; usually measured by real gross domestic product (GDP).
Capital Resources
goods made and used to produce other goods and services
Central Banking System
A nation's central bank that is established to regulate the money supply and oversee the nation's banks. The Federal Reserve is the central bank of the United States.
Choice
to make a decision
Circular Flow
a model of an economy showing the interactions between households and businesses as they exchange goods, services and resources in markets
Collateral
Something of value (often a house or car) pledged by a borrower as security for a loan. If the borrower fails to make payments on the loan, the collateral may be sold by the lender to pay the debt.
Command Economy
An economy in which most economic issues of production and distribution are resolved through central planning and control.
Comparative Advantage
The ability of a producer or a country to produce a good or service at a lower opportunity cost than some other producer or country.
Competition
methods used by businesses to gain more customers and earn higher profits
Compound Interest
Interest that is earned not only on the original sum but also on the interest accumulated.
Consumer Price Index
A price index that measures the cost of a fixed basket of consumer goods and services and compares the cost of this basket in one time period with its cost in some base period.
Consumer Price Index
increases or decreases in cost of living based on items like food, housing, transportation, gas, and insurance costs to the average consumer.
Consumers
people who buy and/or use goods and services to satisfy wants
Corporation
group regarded as individual by law: a company recognized by law as a single body with its own powers and liabilities, separate from those of the individual members. Corporations perform many of the functions of private business, governments, educational bodies,
Costs/Benefits
the bad and good points related to making a decision
Credit
promise of payment at a future time in return for goods/services now
Credit Report
A report about a person's credit history, including his or her ability and willingness to repay debts, based on how reliably he or she has repaid debts in the past.
Currency
paper money that is used by a country
Debit
money owed on an account
Deflation
A sustained period of decrease in the average price level of all goods and services produced in the economy.
Demand
the amount that consumers are able and willing to buy at all possible prices at a given time
Deposit
money put into a bank account
Discount Rate
The percentage rate used to calculate the present value of an investment. The "required discount rate" is the rate of return required by the investor.
Distribution of wealth
is a comparison of the wealth of various members or groups in a society. It differs from the distribution of income in that it looks at the distribution of ownership of the assets in a society, rather than the current income of members of that society.
Dividend
A share of the company's net profits paid to stockholders.
Division of Labor
when workers perform part of a production task
Earn
to receive money for doing work
Economics
the study of the production, consumption, and distribution of goods and services
Economic Growth
The percentage increase in real output as measured by real GDP or per capita real GDP.
Economic sanctions
domestic penalties applied by one country (or group of countries) on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas.
Economic System
the way a society organizes the production, consumption and distribution of goods and services
Economic Way of Thinking
A reasoning process that involves considering opportunity costs as well as benefits in making decisions.
Employment
an occupation by which a person earns a living
Entrepreneur
someone who takes the risk of producing a product or starting a new business
Equilibrium Price
The price at which the quantity demanded by buyers equals the quantity supplied by sellers.
Exchange Rate
ratio at which a unit of currency of one country can be exchanged for that of another country
Exports
the goods and services that producers in one nation sell to buyers in other nations
Factors of Production
Productive resources required to produce the goods and services that people want, such as natural resources, human resources, capital goods and entrepreneurship.
Federal Deposit Insurance Corporation (FDIC)
A federal agency that regulates banks and guarantees depositors' savings up to $250,000 per account in most commercial banks, savings banks and savings associations.
Federal Reserve Bank
the central banking organization in the United States
Federal Reserve Discount Rate
The interest rate the Federal Reserve charges commercial banks for loans.
Finance
the management of money
Fiscal Policy
Decisions about spending and taxation levels by the federal government made to promote full employment and output or reduce inflation.
Goods
things that can satisfy people's wants
Gross Domestic Product
The market value of all final goods and services produced in a country in a calendar year.
Human Capital
A person's health, education, experience, training, skills and values.
Human Resources
workers who make goods and provide services
Imports
the goods and services that consumers in one nation buy from sellers in other nations
Incentive
something that influences the behavior of people
Income
amount of money you earn or receive from different sources
Income Tax
Payment made by individuals and corporations to the federal government (and to some state and local govern¬ments) based on earned and unearned income received.
Inflation
A rise in the general or average price level of the goods and services produced in an economy.
Insurance
An arrangement whereby a company provides a guarantee of compensation for specified forms of loss, damage, injury or death. People pay premiums to buy insur¬ance policies.
Interdependent
when people and nations depend on one another for the goods and services they want
Interest
payments made for the use of money
Invest
to use money to gain a profit
Labor Force
The people in a nation who are 16 or over and are employed or actively looking for work.
Labor Union
legally recognized as representatives of workers in many industries in the United States. Their activity today centers on collective bargaining over wages, benefits, and working conditions for their membership, and on representing their members in disputes with management over violations of contract provisions.
Liability
Responsibility for a debt or payment.
Loss
the money a business loses after it pays its production costs
Markets
a place where buyers and sellers exchange goods and services for money
Market Economy
An economy that relies on a system of interdependent market prices to allocate goods, services, and productive resources and to coordinate the diverse plans of consumers and producers.
Minimum Wage
The smallest hourly wage that an employee may be paid as mandated by federal law. Inflation and other factors necessitate periodic adjustments to the actual number.
Monetary Policy
Changes in the supply of money and the availability of credit initiated by a nation's central bank to promote price stability, full employment and reasonable rates of economic growth.
Money
a good used to buy other goods and services
Money Supply
Currency in the hands of the public plus the public's demand deposits at financial institutions.
National Debt
The total amount owed by the national government to those from whom it has borrowed to finance the accumulated difference between annual budget deficits and annual budget surpluses.
Natural Resources
gifts of nature used to make goods and services
Needs
things you must have to live
Net Worth
The current value of a person's assets minus liabilities.
Nonprofit institutions
organizations that are created to serve a goal or specific purpose and whose primary purpose is not to earn a profit. Nonprofit institutions are not motivated by making profits but by accomplishing their organization's chartered purpose which is to offer some benefit to the general public.
Open Market Operations
The buying and selling of gov¬ernment bonds by the Federal Reserve which affects interest rates, bank reserves and the money supply.
Opportunity Cost
the next best choice that you give up
Price
the amount that people pay when they buy a good or service
Producers
people who use resources to make goods and services
Productivity
The amount of output (goods and services) produced per unit of input (productive resources) used.
Profit
the money a business makes after it pays its production costs
Public Goods
goods and services that are provided by the government
Quota
In international trade, government-imposed limit on the quantity, or in exceptional cases the value, of the goods or services that may be exported or imported over a specified period of time.
Rate of Return
Earnings from an investment, stated as a percentage of the amount invested.
Recession
A decline in the rate of national economic activity, usually measured by a decline in real GDP for at least two consecutive quarters (six months).
Redistribution of wealth
is the transfer of income, wealth or property from some individuals to others caused by a social mechanism such as taxation, monetary policies, welfare, nationalization, charity, divorce or tort law.[1] Most often it refers to progressive redistribution, from the rich to the poor, although it may also refer to regressive redistribution, from the poor to the rich.
Reserve Requirements
The fraction of a bank's deposits that it is required by law to keep on hand or with the Federal Reserve.
Resources
things used to make goods and services
Revenue
The money a business receives from customers who buy its goods and services.
Save
to keep money to spend later
Scarcity
when there is not enough for all who want it
Services
activities that can satisfy people's wants
Shortage
having fewer goods, services or resources available than you want
Specialization
when people produce only some of the goods and services they consume, then trade with others to get more of the things they want
Spend
to use money to buy goods and services
Standard of Living
a level of material comfort in everyday life that is measured by the goods and services available to an individual, group, or nation
Stock
An ownership share or shares of ownership in a corporation.
Stock Market
A market in which the public trades stock that someone already owns.
Supply
the amount that producers are able and willing to produce and sell at all possible prices at a given time
Surplus
having more goods, services or resources available than you want
Tariff
A tax on an imported good or service.
Taxes
required payments of money made to governments by people and businesses that are used to provide goods and services.
Time Value of Money
The idea that a dollar received in the future has less value than a dollar received today because a dollar received today can earn interest over time.
Trade-offs
when you choose to get less of one thing in order to get more of something else
Traditional Economy
An economy in which customs and habits from the past are used to resolve most economic issues of production and distribution.
Wants
things people like and desire
Withdrawal
money taken out of a bank account
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