Economics

Prohibition

A ban on something, in the 1920s it was a nationwide ban on the sales and imports of alcoholic beverages

Speakeasy

A place where alcoholic beverages were illegally sold, during the prohibition

Bootlegger

person who sells, manufacture, transport, or distributes alcohol illegally

Red Scare and the Palmer Raids

fear of communism, accused of communism would be arrested and captured for deportation

19th Amendment

the amendment granted women the right to vote

Fundamentalism

Religious movement based on the belief that everything written in the Bible was true

Scopes Trial

A fight between fundamentalist (traditional) and modernist values in America

Flapper

a young, modern women that went against social norms

Harlem Renaissance

turning point of African American heritage, embracing self-expression and rejecting stereotypes. Many African Americans migrated from southern to northern cities seeking opportunities

Cotton Club

Harlem's premier nightclub which featured many of the greatest African American entertainers

Emergency Quota Act

Restricted the annual number of immigrants admitted from a country

Kellogg-Briand Pact

An agreement that renounces war as a national policy and settle disputes in a peaceful manner

Ku Klux Klan

A secret hate group in southern US which aimed to suppress people

The Business Cycle

The cycle of prosperity and recession that market economies go through

Supply and Demand

Concept that helps determine prices and quantities of goods and services in a market economy

Market Economy

buyer and seller work together to agree on a price

Capitalism

economic thought that you want to make as much money back as possible though production, exchange of goods, and services through a network of markets

Currency

actual money used in a particular country

Deficit Financing

losing money right away to make money back in the long run

Balanced Budget

A budget where the expenditures and the revenues are equal

Budget

A spending plan developed by the government

Expenditures

Any money spent by the government

revenue

total earnings a business generates

Laissez-Faire

let people do as they choose without interfering

Opportunity cost

Whatever you give up to do something

Scarcity

The decision between infinite wants and finite (limited) resources

Incentives

A set of external (rather than intrinsic) motivators that explain people’s choices

Macroeconomics

The study of production, employment, prices, and politics on a nationwide scale

Microeconomics

The study of how consumers, works, and firms interact to generate outcomes in specific markets

Planned economy

government controls factors of production

Command economy

complete control by the government

Invisible hand

the unintended social benefits resulting from individual actions

Price signals

the information that markets generate to guide the distribution of resources

Surplus

more product than is demanded

Shortage

The demand is greater than the amount of product because suppliers have no incentive to produce due to low prices

Equilibrium

quantity supplied = quantity demanded

Equilibrium price

the price of which the quantity of a product offered is equal to the quantity of the product in demand

Equilibrium quantity

the quantity demanded or supplied of the equilibrium price