A tangible object that can be bought and used to meet the needs and wants of customers.
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Scarcity
Our goods and services are limited due to this economic problem.
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Physical capital
Man-made objects that are used to make other goods and services.
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Renewable Resource
A resource that can be naturally replenished.
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Salary
A fixed income paid on a monthly basis.
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Trade-offs
An alternative that we sacrifice when we make a decision.
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Opportunity Cost
The most desirable sacrifice when we make a decision.
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Need
That which is necessary for survival.
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Land
Natural resources used to make goods and services.
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Productivity
The degree to which resources are being used efficiently.
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Human Capital
Knowledge and skill gained on the job that is used to make goods and services.
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Incentive
A reward that is offered to persuade people to take certain economic actions.
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Consumer
A person who buys or uses goods and services.
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Fixed cost
A cost that remains the same no matter how many goods are produced.
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Wage
The payment for the service of one unit of labor.
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Total Cost
Fixed costs plus variable costs.
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Producer
A person who makes goods and services.
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Marginal costs
The extra cost of producing one more unit of a good.
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Variable costs
The expenses that change with the number of goods produced.
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Greater
When using the cost benefit analysis, you want your benefits to be \_____________ than your costs.
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service
actions one person performs for another.
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Innovation
improving a good or service.
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capital goods
goods or raw materials used to make finished products
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profit
the amount of money left over after all the costs of production have been paid
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automation
machines control production
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division of labor
the breaking down of a job into separate, smaller tasks, which are performed by different workers.
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consumer goods
goods bought in the market and not used in the production of other goods.
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specialization
takes place when people, businesses, regions, and even countries concentrate on goods and services that they can produce better than anyone else.
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robotics
machines perform physical tasks
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blue-collar worker
working class employee who performs manual or unskilled labor
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assembly line
a manufacturing process in which interchangeable parts are added to a product to create an end product
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market
place where the price of goods and services are determined as exchange takes place.
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white-collar worker
perform tasks that require less physical labor/skilled workers
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price ceiling
a maximum price for a good or service
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disequilibrium
any price or quantity not at equilibrium
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unskilled labor
requires no specialized skills, education, training
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monopoly
a market dominated by a single seller
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partnership
a business organization owned by two or more persons who agree on a specific division of responsibilities and profits
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bull market
when the stock market steadily rises over a period of time
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supply-side economics
a school of economics that believes that tax cuts can help an economy by raising supply
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oligopoly
a market structure in which a few large firms dominate the market
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shares
units in which ownership of a corporation are sold in
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money
anything that serves as a medium of exchange, a unit of account, and a store of value.
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fiscal policy
the use of government spending to influence the economy.
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collective bargaining
the union and company representatives meet to negotiate a new labor contract
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Sherman anti-trust
created in 1890 and banned monopolies and other business combinations that prevented competition
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shortage
when quantity demanded is more than quantity supplied (excess demand)
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bartering
how people acquire goods and services without money, used in a traditional economy.
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Karl Marx
philosopher and political economist known better as a communist and author of the Communist Manifesto
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Federal Reserve
supervises and regulates banks, implements monetary policy, controls the amount of currency in circulation, and sets reserve ratios
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inflation
a general increase in prices
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equilibrium
the point at which quantity demanded and quantity supplied are equal
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Natural monopoly
a market that runs most efficiently when one large firm supplies all the output, like public water
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sole proprietorship
a business owned and managed by a single individual
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bank
an institution for receiving, keeping, and lending money
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stock split
when each single share of stock splits into more than one share, used to encourage investors to buy stock.
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Demand Side Economics
the idea that government spending and tax cuts help an economy by raising demand
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Communist Manifesto
lays out the foundation for communism by describing the conflict between the proletariat and the bourgeois as leading to revolution
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Trickle Down Economics
investing money in companies and giving them tax breaks will benefit the economy because eventually, consumers will experience the effects.
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New York Stock Exchange
the country's largest and most powerful exchange
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skilled labor
demands advanced skills and education
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right to work
this is a measure that bans mandatory union membership, NC is one
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surplus
when quantity supplied is more than quantity demanded (excess supply)
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commodity
a product that is the same no matter who produces it
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government monopoly
a monopoly created by the government
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strike
organized work stoppage intended to force an employer to address union demands
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monopolistic competition
a market structure in which many companies sell products that are similar but not identical
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deflation
a substantial drop in prices
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corporation
a legal entity owned by individual stock holders
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bear market
when the stock market steadily falls over a period of time
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price floor
a minimum price for a good or service
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professional labor
requires specialized abilities and training to do tasks
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arbitration
the neutral third party review the case and imposes a decision that is legally binding for both sides
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horizontal merger
joining of two or more firms competing in the same market with the same good or service
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semi-skilled labor
requires minimal specialized skill and education
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NASDAQ
the American market for over the counter stocks
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Federalists
believed a centralized banking system was necessary
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commercial banks
offer checking services, accept deposits, and make loans
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conglomerate
merging of more than three businesses that make unrelated products
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capital gains
money made when an investor sells stock for more than he or she paid for it.
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stockbrokers
link buyers and sellers of stock, work for a brokerage firm
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dividends
a portion of a corporation's profit paid out to stockholders quaterly
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expansionary policy
policy that during a recession or depression the government should increase spending or decrease taxes
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vertical merger
joining of two or more firms involved in different stages of production of the same good or service.
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Keynes
person who developed the idea of demand-side economics, which encourages government action to increase and decrease demand and output
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multinational corporations
large corporations that produces and sells its goods and services throughout the world
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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
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mediation
neutral mediator meets with each side to try and find some solution and the decision reached is nonbinding
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labor union
an organization that tries to improve working conditions, wages, and benefits for its members
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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
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Antifederalists
wanted a decentralized banking system where banks were operated by the states
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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
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collateral
property used to secure a loan
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decrease
during times of recession and depression the Fed \______________ interest rates. (this encourages lending and discourages savings)
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contractionary policy
policy that during inflation the government should decrease spending or increase taxes
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increase
During times of inflation, the Fed \_________ interest rates. (this encourages savings and discourages lending)
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Richmond Federal
of the 12 Federal Reserve districts, NC belongs to this one
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Dow Jones/ S&P 500
used to determine stock performance by either examining 30 large companies or 500 companies
Studied by 77 people
