Terms in this set (96)
Agreement by 2 parties to place a dispute before a 3rd party for a binding settlement.
Better Business Bureau
Business-sponsored non-profit organizations providing information on local companies to consumers.
Systematic change in the real GDP marked by alternating periods of expansion and contraction.
Changes in real GDP that occur on a less than systematic basis.
A formal contract to repay borrowed money and interest on the borrowed money at regular future intervals.
Production needed if the firm is to recover its costs; production level where total cost equals total revenue.
Tools, equipment, or other manufactured goods used to produce other goods and services; a factor of production.
Economic system in which private citizens own and use the factors of production in order to generate profits.
Change in Quantity Demanded
Movement along the demand curve showing that a different quantity is purchased in response to a change in price.
Change in Quantity Supplied
Change in amount offered for sale in response to a price change; movement along the supply curve.
Change in Demand
Consumers demand different amounts at every price, causing the downward curve to shift to the left or right.
Process of negotiation between union and management representatives over pay, benefits, and job related matters.
Change in Supply
Different amounts offered for sale at each and every price in the market: shift in the supply curve.
Economic system characterized by central authority that makes most of the major economic decisions.
Money that has an alternative use as a commodity; gunpowder, flower, corn.
Firm with four or more business making unrelated products, with no business responsible for a majority of its sales.
Goods intended for final use by consumers rather than businesses.
non-profit association performing some kind of economic activity for the benefit of its members.
Form of business organization recognized by law as a separate legal entity with all the rights and responsibilities of an individual including the right to buy and sell property, enter into legal contracts, sue and be sued.
Unemployment directly related to swings in the business cycle.
Decrease in the general level of the prices of goods and services.
Gradual wear on capital goods during production.
State of the economy with large members of unemployed, declining real incomes, over capacity in manufacturing plants, general economic hardship.
Use of government spending and revenue collection measures to influence the economy.
Cost of production that does not change when the output changes.
Income that does increase even though prices go up.
Proportional tax on individual incomes after a specified threshold has been met.
Benefits received by employers in addition to wages and salaries.
Paradox of Value
High value of non essentials (wants) and low cost of essentials (needs).
Cost of the next best business alternative use of money, time, or resources when one choice is made rather than another.
Goods that deteriorate or no longer work after 3 years of use.
Economic institution that operates like a business but does not seek financial gain; schools, churches, community service.
GDP (Gross Domestic Product)
$ value of all financial goods, services, and structures produced within a country's national borders during a one year period.
Commercial Bank chartered by the National Banking System; member of Fed.
Seemingly invisible barrier hindering advancement of women and minorities in male dominated organization.
Percentage change in independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity supplied or demanded).
Combination of 2 or more firms producing the same kind of product.
The Development on international integration arising from the inter change of world views, products, ideas, and other aspects of culture.
GNP (Gross National Product)
Total dollar value of all goods, services, and structures produced in one year regardless of where the production takes place; largest measure of nations income.
Unincorporated business owned and operated by 2 or more people who share the profits and have unlimited liability for the debts and obligations of the firm; general
Regular allowance for someone who has worked a certain number of years, reached a certain age, or has suffered from an injury.
Per Capita Income
Average total income per person; total divided by population
Production Possibilities Frontier
Diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed.
Maximum legal price that can be charged for a product.
Minimum legal price that can be charged for a product.
Amount borrowed when getting a loan or issuing a bond.
Limit on the amount of a good that can be allowed into a country.
Personal income with less individual income taxes; total income is available to the consumer sector after income taxes.
Goods that last longer than three years.
When economic activities in one part of the country or world affect what happens elsewhere.
A Social science dealing with the study of how people satisfy seemingly unlimited and competing wants with the careful use of scarce resources.
When percentage change in the independent variable (usually price) causes a more than proportionate change in the dependent variable (usually quantity demanded or supply).
A risk-taking individual in search of profits; one of the four factors of production.
Price where quantity supplied equals the quantity demanded; clears the market.
Government confiscation of private or foreign owned goods without compensation.
Factors of Production
Productive resources; land, labor, capital, and entrepreneurship.
Privately owned, publically controlled, central bank of the United States.
Money by government decree; it has no alternative value or use as a commodity.
Federal Insurance Contribution Acts: tax levied on employers and for employers to support social security and Medicare.
Money used to buy tools and equipment used in production.
Use in general level of prices.
Payment made for the use of borrowed money; usually paid at periodic intervals for long term bonds or loans.
Fixed income instruments that carry a rating of "BB" or lower.
Philosophy that government should not interfere with business activity.
Law of Demand
More will be demanded at lower prices of less at higher prices.
Law of Supply
More will be offered for sale at high prices than at lower prices.
Leading Economic Indicators
These help traders predict and react to where the marked is heading.
Potential for being readily convertible into cash or other assets.
Modified Free Enterprise
A free enterprise economy with some governmental involvement.
Actions by the Federal Reserve System to expand or contract the money supply in order to affect cost and availability or credit.
Corporation producing and selling without regard to national boundaries and whose business activities are located in several different countries.
Bonds that are often tax exempt issued by state and local governments.
A company that sells stock in itself and uses the proceeds to buy stocks and bonds issued by other companies.
An agreement signed in 1993 to reduce tariffs between the United States, Canada, and Mexico.
GDP after adjustments for inflation.
Decline in real GDP lasting at least 2 quarters or more.
General state or city tax levied on a product at the time of sale.
Interest-bearing deposit not requiring prior notice before making a withdrawal.
Unemployment caused by annual changes in the weather or other conditions that prevail at certain times of the year.
Where quantity supplied is less that quantity demanded.
Unincorporated business owned and run by a single person who has rights to all profits and unlimited liability for all debts of the firm.
Combination of stagnant economic growth and inflation.
Certificate of ownership in a corporation.
Government payment to encourage or protect a certain economic activity.
That portion of a change in a quantity demanded due to a change in relative price of product.
U.S. Treasury Bonds
Bond with maturity of 10-30 years.
Owner is personally and fully responsible for all loses and debts of a business.
Not trained to operate specialized machines and equipment.
Production cost that varies as output changes.
Combination of firms involved in different steps of manufacturing or marketing.
International Agency that administers trade agreements, settles trade disputes between governments, organizes trade negotiations, and provides technical assistance and training for developing countries.
Quantity supplied is greater than quantity demanded.
The organizing principle for human life on a finite planet.
A tax placed on an imported product.
Balance of payments outcome when spending on imports exceeds revenues received from exports.
Allocation of scarce resources and other economic activity is the result of ritual and habit.