econ

Mutual Fund

A pool of money from many investors used to buy stocks, bonds, or other assets.

Short Selling

Selling borrowed stock hoping to buy it back later at a lower price.

Dividend

A portion of a company’s profits paid to shareholders.

Stock Market

A place where stocks are bought and sold.

Stockholder

A person who owns shares in a company.

Bond

A loan made by an investor to a government or company.

Productivity

The amount of output produced per worker or hour.

Profit

Revenue minus costs.

Sole Proprietorship

A business owned by one person.

Partnership

A business owned by two or more people.

Corporation

A large business owned by shareholders with limited liability.

Franchise

A business using another company’s name and system.

Conglomerate

A corporation that owns many different businesses.

Merger

When two companies combine into one.

Competition

Rivalry between businesses for customers.

Monopoly

A market controlled by one seller.

Entrepreneur

People who start and run businesses.

Liability

Legal responsibility for debts.

Automation

Using machines/technology to do jobs.

Human Capital

Skills, education, and experience workers have.

Types of Labor

Levels of training required for jobs.

Labor Union

An organization that protects workers’ rights.

Wages

Money earned for work.

Real Wages

Wages adjusted for inflation (buying power).

Nominal Wages

Wages not adjusted for inflation.

Wage Determination

By supply and demand for labor.

Strike

Workers refusing to work to demand changes.

Boycott

Refusing to buy products to protest.

Picket

Protesting outside a workplace.

Lockout

Employers preventing workers from working.

Blacklisting

Refusing to hire certain workers.

Scabs

Replacement workers during strikes.

Right-to-Work Laws

Laws that prevent mandatory union membership.

Collective Bargaining

Negotiation between workers and employers.

Unemployment

When people who want jobs cannot find them.

Gender Pay Gap

Difference in earnings between men and women.

Replaced by Technology

Some jobs are replaced, but new ones are created; skills matter.

Business Formation

Through entrepreneurship, investment, and expansion.

Work Definition

Providing labor in exchange for wages.

Compete in Labor Market

By gaining skills, education, and experience.

Higher Wages Factors

Education, demand for skills, experience, and location.

Organize Workers

To gain better wages, benefits, and conditions.

Unemployment Causes

Economic downturns, automation, skill mismatch.

Minimum Wage Debate

Pro: Reduces poverty; Con: May increase unemployment.

Income Inequality Causes

Differences in education, opportunity, and wealth distribution.

American Factory Lessons

Conflict between workers and management, globalization, and automation.

Inequality Problems

It limits opportunity and slows economic growth.