A tangible object that can be bought and used to meet the needs and wants of customers.
2
New cards
Scarcity
Our goods and services are limited due to this economic problem.
3
New cards
Physical capital
Man-made objects that are used to make other goods and services.
4
New cards
Renewable Resource
A resource that can be naturally replenished.
5
New cards
Salary
A fixed income paid on a monthly basis.
6
New cards
Trade-offs
An alternative that we sacrifice when we make a decision.
7
New cards
Opportunity Cost
The most desirable sacrifice when we make a decision.
8
New cards
Need
That which is necessary for survival.
9
New cards
Land
Natural resources used to make goods and services.
10
New cards
Productivity
The degree to which resources are being used efficiently.
11
New cards
Human Capital
Knowledge and skill gained on the job that is used to make goods and services.
12
New cards
Incentive
A reward that is offered to persuade people to take certain economic actions.
13
New cards
Consumer
A person who buys or uses goods and services.
14
New cards
Fixed cost
A cost that remains the same no matter how many goods are produced.
15
New cards
Wage
The payment for the service of one unit of labor.
16
New cards
Total Cost
Fixed costs plus variable costs.
17
New cards
Producer
A person who makes goods and services.
18
New cards
Marginal costs
The extra cost of producing one more unit of a good.
19
New cards
Variable costs
The expenses that change with the number of goods produced.
20
New cards
Greater
When using the cost benefit analysis, you want your benefits to be \_____________ than your costs.
21
New cards
service
actions one person performs for another.
22
New cards
Innovation
improving a good or service.
23
New cards
capital goods
goods or raw materials used to make finished products
24
New cards
profit
the amount of money left over after all the costs of production have been paid
25
New cards
automation
machines control production
26
New cards
division of labor
the breaking down of a job into separate, smaller tasks, which are performed by different workers.
27
New cards
consumer goods
goods bought in the market and not used in the production of other goods.
28
New cards
specialization
takes place when people, businesses, regions, and even countries concentrate on goods and services that they can produce better than anyone else.
29
New cards
robotics
machines perform physical tasks
30
New cards
blue-collar worker
working class employee who performs manual or unskilled labor
31
New cards
assembly line
a manufacturing process in which interchangeable parts are added to a product to create an end product
32
New cards
market
place where the price of goods and services are determined as exchange takes place.
33
New cards
white-collar worker
perform tasks that require less physical labor/skilled workers
34
New cards
price ceiling
a maximum price for a good or service
35
New cards
disequilibrium
any price or quantity not at equilibrium
36
New cards
unskilled labor
requires no specialized skills, education, training
37
New cards
monopoly
a market dominated by a single seller
38
New cards
partnership
a business organization owned by two or more persons who agree on a specific division of responsibilities and profits
39
New cards
bull market
when the stock market steadily rises over a period of time
40
New cards
supply-side economics
a school of economics that believes that tax cuts can help an economy by raising supply
41
New cards
oligopoly
a market structure in which a few large firms dominate the market
42
New cards
shares
units in which ownership of a corporation are sold in
43
New cards
money
anything that serves as a medium of exchange, a unit of account, and a store of value.
44
New cards
fiscal policy
the use of government spending to influence the economy.
45
New cards
collective bargaining
the union and company representatives meet to negotiate a new labor contract
46
New cards
Sherman anti-trust
created in 1890 and banned monopolies and other business combinations that prevented competition
47
New cards
shortage
when quantity demanded is more than quantity supplied (excess demand)
48
New cards
bartering
how people acquire goods and services without money, used in a traditional economy.
49
New cards
Karl Marx
philosopher and political economist known better as a communist and author of the Communist Manifesto
50
New cards
Federal Reserve
supervises and regulates banks, implements monetary policy, controls the amount of currency in circulation, and sets reserve ratios
51
New cards
inflation
a general increase in prices
52
New cards
equilibrium
the point at which quantity demanded and quantity supplied are equal
53
New cards
Natural monopoly
a market that runs most efficiently when one large firm supplies all the output, like public water
54
New cards
sole proprietorship
a business owned and managed by a single individual
55
New cards
bank
an institution for receiving, keeping, and lending money
56
New cards
stock split
when each single share of stock splits into more than one share, used to encourage investors to buy stock.
57
New cards
Demand Side Economics
the idea that government spending and tax cuts help an economy by raising demand
58
New cards
Communist Manifesto
lays out the foundation for communism by describing the conflict between the proletariat and the bourgeois as leading to revolution
59
New cards
Trickle Down Economics
investing money in companies and giving them tax breaks will benefit the economy because eventually, consumers will experience the effects.
60
New cards
New York Stock Exchange
the country's largest and most powerful exchange
61
New cards
skilled labor
demands advanced skills and education
62
New cards
right to work
this is a measure that bans mandatory union membership, NC is one
63
New cards
surplus
when quantity supplied is more than quantity demanded (excess supply)
64
New cards
commodity
a product that is the same no matter who produces it
65
New cards
government monopoly
a monopoly created by the government
66
New cards
strike
organized work stoppage intended to force an employer to address union demands
67
New cards
monopolistic competition
a market structure in which many companies sell products that are similar but not identical
68
New cards
deflation
a substantial drop in prices
69
New cards
corporation
a legal entity owned by individual stock holders
70
New cards
bear market
when the stock market steadily falls over a period of time
71
New cards
price floor
a minimum price for a good or service
72
New cards
professional labor
requires specialized abilities and training to do tasks
73
New cards
arbitration
the neutral third party review the case and imposes a decision that is legally binding for both sides
74
New cards
horizontal merger
joining of two or more firms competing in the same market with the same good or service
75
New cards
semi-skilled labor
requires minimal specialized skill and education
76
New cards
NASDAQ
the American market for over the counter stocks
77
New cards
Federalists
believed a centralized banking system was necessary
78
New cards
commercial banks
offer checking services, accept deposits, and make loans
79
New cards
conglomerate
merging of more than three businesses that make unrelated products
80
New cards
capital gains
money made when an investor sells stock for more than he or she paid for it.
81
New cards
stockbrokers
link buyers and sellers of stock, work for a brokerage firm
82
New cards
dividends
a portion of a corporation's profit paid out to stockholders quaterly
83
New cards
expansionary policy
policy that during a recession or depression the government should increase spending or decrease taxes
84
New cards
vertical merger
joining of two or more firms involved in different stages of production of the same good or service.
85
New cards
Keynes
person who developed the idea of demand-side economics, which encourages government action to increase and decrease demand and output
86
New cards
multinational corporations
large corporations that produces and sells its goods and services throughout the world
87
New cards
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
88
New cards
mediation
neutral mediator meets with each side to try and find some solution and the decision reached is nonbinding
89
New cards
labor union
an organization that tries to improve working conditions, wages, and benefits for its members
90
New cards
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
91
New cards
Antifederalists
wanted a decentralized banking system where banks were operated by the states
92
New cards
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
93
New cards
collateral
property used to secure a loan
94
New cards
decrease
during times of recession and depression the Fed \______________ interest rates. (this encourages lending and discourages savings)
95
New cards
contractionary policy
policy that during inflation the government should decrease spending or increase taxes
96
New cards
increase
During times of inflation, the Fed \_________ interest rates. (this encourages savings and discourages lending)
97
New cards
Richmond Federal
of the 12 Federal Reserve districts, NC belongs to this one
98
New cards
Dow Jones/ S&P 500
used to determine stock performance by either examining 30 large companies or 500 companies