Studied by 8 peopleGood
A tangible object that can be bought and used to meet the needs and wants of customers.
Scarcity
Our goods and services are limited due to this economic problem.
Physical capital
Man-made objects that are used to make other goods and services.
Renewable Resource
A resource that can be naturally replenished.
Salary
A fixed income paid on a monthly basis.
Trade-offs
An alternative that we sacrifice when we make a decision.
Opportunity Cost
The most desirable sacrifice when we make a decision.
Need
That which is necessary for survival.
Land
Natural resources used to make goods and services.
Productivity
The degree to which resources are being used efficiently.
Human Capital
Knowledge and skill gained on the job that is used to make goods and services.
Incentive
A reward that is offered to persuade people to take certain economic actions.
Consumer
A person who buys or uses goods and services.
Fixed cost
A cost that remains the same no matter how many goods are produced.
Wage
The payment for the service of one unit of labor.
Total Cost
Fixed costs plus variable costs.
Producer
A person who makes goods and services.
Marginal costs
The extra cost of producing one more unit of a good.
Variable costs
The expenses that change with the number of goods produced.
Greater
When using the cost benefit analysis, you want your benefits to be _____________ than your costs.
service
actions one person performs for another.
Innovation
improving a good or service.
capital goods
goods or raw materials used to make finished products
profit
the amount of money left over after all the costs of production have been paid
automation
machines control production
division of labor
the breaking down of a job into separate, smaller tasks, which are performed by different workers.
consumer goods
goods bought in the market and not used in the production of other goods.
specialization
takes place when people, businesses, regions, and even countries concentrate on goods and services that they can produce better than anyone else.
robotics
machines perform physical tasks
blue-collar worker
working class employee who performs manual or unskilled labor
assembly line
a manufacturing process in which interchangeable parts are added to a product to create an end product
market
place where the price of goods and services are determined as exchange takes place.
white-collar worker
perform tasks that require less physical labor/skilled workers
price ceiling
a maximum price for a good or service
disequilibrium
any price or quantity not at equilibrium
unskilled labor
requires no specialized skills, education, training
monopoly
a market dominated by a single seller
partnership
a business organization owned by two or more persons who agree on a specific division of responsibilities and profits
bull market
when the stock market steadily rises over a period of time
supply-side economics
a school of economics that believes that tax cuts can help an economy by raising supply
oligopoly
a market structure in which a few large firms dominate the market
shares
units in which ownership of a corporation are sold in
money
anything that serves as a medium of exchange, a unit of account, and a store of value.
fiscal policy
the use of government spending to influence the economy.
collective bargaining
the union and company representatives meet to negotiate a new labor contract
Sherman anti-trust
created in 1890 and banned monopolies and other business combinations that prevented competition
shortage
when quantity demanded is more than quantity supplied (excess demand)
bartering
how people acquire goods and services without money, used in a traditional economy.
Karl Marx
philosopher and political economist known better as a communist and author of the Communist Manifesto
Federal Reserve
supervises and regulates banks, implements monetary policy, controls the amount of currency in circulation, and sets reserve ratios
inflation
a general increase in prices
equilibrium
the point at which quantity demanded and quantity supplied are equal
Natural monopoly
a market that runs most efficiently when one large firm supplies all the output, like public water
sole proprietorship
a business owned and managed by a single individual
bank
an institution for receiving, keeping, and lending money
stock split
when each single share of stock splits into more than one share, used to encourage investors to buy stock.
Demand Side Economics
the idea that government spending and tax cuts help an economy by raising demand
Communist Manifesto
lays out the foundation for communism by describing the conflict between the proletariat and the bourgeois as leading to revolution
Trickle Down Economics
investing money in companies and giving them tax breaks will benefit the economy because eventually, consumers will experience the effects.
New York Stock Exchange
the country's largest and most powerful exchange
skilled labor
demands advanced skills and education
right to work
this is a measure that bans mandatory union membership, NC is one
surplus
when quantity supplied is more than quantity demanded (excess supply)
commodity
a product that is the same no matter who produces it
government monopoly
a monopoly created by the government
strike
organized work stoppage intended to force an employer to address union demands
monopolistic competition
a market structure in which many companies sell products that are similar but not identical
deflation
a substantial drop in prices
corporation
a legal entity owned by individual stock holders
bear market
when the stock market steadily falls over a period of time
price floor
a minimum price for a good or service
professional labor
requires specialized abilities and training to do tasks
arbitration
the neutral third party review the case and imposes a decision that is legally binding for both sides
horizontal merger
joining of two or more firms competing in the same market with the same good or service
semi-skilled labor
requires minimal specialized skill and education
NASDAQ
the American market for over the counter stocks
Federalists
believed a centralized banking system was necessary
commercial banks
offer checking services, accept deposits, and make loans
conglomerate
merging of more than three businesses that make unrelated products
capital gains
money made when an investor sells stock for more than he or she paid for it.
stockbrokers
link buyers and sellers of stock, work for a brokerage firm
dividends
a portion of a corporation's profit paid out to stockholders quaterly
expansionary policy
policy that during a recession or depression the government should increase spending or decrease taxes
vertical merger
joining of two or more firms involved in different stages of production of the same good or service.
Keynes
person who developed the idea of demand-side economics, which encourages government action to increase and decrease demand and output
multinational corporations
large corporations that produces and sells its goods and services throughout the world
savings and loans
originally created when members deposited funds into a general fund and then borrowed money to buy their own homes; now serves many of the same functions as a bank
mediation
neutral mediator meets with each side to try and find some solution and the decision reached is nonbinding
labor union
an organization that tries to improve working conditions, wages, and benefits for its members
capital loss
money lost when an investor sells stock for less than he or she paid for it or when a company doesn't make a profit or can't pay dividends
Antifederalists
wanted a decentralized banking system where banks were operated by the states
Credit Union
cooperative lending associations for particular groups (ex: state employees), usually small, specialize in home mortgages and car loans, some provide checking/saving property used to secure loan
collateral
property used to secure a loan
decrease
during times of recession and depression the Fed ______________ interest rates. (this encourages lending and discourages savings)
contractionary policy
policy that during inflation the government should decrease spending or increase taxes
increase
During times of inflation, the Fed _________ interest rates. (this encourages savings and discourages lending)
Richmond Federal
of the 12 Federal Reserve districts, NC belongs to this one
Dow Jones/ S&P 500
used to determine stock performance by either examining 30 large companies or 500 companies
Note 
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