Studied by 2 people
supply
The quantity of something that producers have available for sale
demand
the quantity of a good or service that consumers are willing and able to buy
multinational
A corporation that engages in business worldwide
conglomerate
a group of diverse companies under common ownership and run as a single organization
elastic
describes demand that is very sensitive to a change in price
inelastic
describes demand that is not very sensitive to price changes
Shorting/Short Selling
an investment or trading strategy that bets on a decline in a security's price. An investor or trader expects the shares to drop and to be able to purchase them at a lower cost, thus keeping the difference as a profit.
bond
a formal contract to repay borrowed money with interest at fixed intervals
stock
A share of ownership in a corporation.
shareholder
A person who invests in a corporation by buying stock and is a partial owner
non
profit
double taxation
a corporation pays income taxes on its earnings, and when dividends are distributed to stockholders, the stockholders pay taxes a second time on the corporate dividends they receive
horizontal merger
the combination of two or more firms competing in the same market with the same good or service
vertical merger
the combination of two or more firms involved in different stages of producing the same good or service
sole proprietor
A business owned by one person
dividend
The portion of corporate profits paid out to stockholders
unlimited liability
The owner is personally and fully responsible for all losses and debts of the business
limited liability
A form of business ownership in which the owners are liable only up to the amount of their individual investments.
Estate Tax (Death Tax)
a tax levied on the net value of the estate of a deceased person before distribution to the heirs.
Microeconomics
the study of how households and firms make decisions and how they interact in markets
Macroeconomics
the study of economy
TINSTAAFL
acronym for THERE IS NO SUCH THING AS A FREE LUNCH; means that there is always a cost for a product, even if it is not evident.
Corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts
union
A worker association that bargains with employers over wages, benefits, and working conditions
equilibriam
A state of balance
royalty fee
weekly or monthly payments made by the owner of the franchise to the seller of the franchise
Franchise
A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area
command economy
An economic system in which the government controls a country's economy.
Traditional Economy
An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next.
market economy
Economic decisions are made by individuals or the open market.
Janet Yellen
Secretary of Treasury
Jerome Powell
Chairman of the Federal Reserve
FOMC (Federal Open Market Committee)
the branch of the Federal Reserve Board that determines the direction of monetary policy
Herschel
Discovered Uranus and made a forty
Rule of 70
Doubling time (in years) = 70/(percentage growth rate).
CPI (Consumer Price Index)
an index of the cost of all goods and services to a typical consumer
gdp
Gross Domestic Product
Recession
A slowdown in a nation's economy
Note 
Flashcard (44)