FBLA: Exploring Economics

Monetary Policy

An attempt to achieve broad economic goals by the regulation of the supply of money.

Fiscal Policy

a government policy for dealing with the budget (especially with taxation and borrowing)

Factors of Production

Factors of production fall into three main groups - land, labor, and capital - and sometimes include entrepreneurship.

Law of Demand

buyers purchase more at lower prices than higher prices

Wage

Pay by the hour

Salary

Pay by the week or month

Limited Liability

A fundamental feature of corporations, whereby investors are liable only up to the amount of their investment.

GDP: Gross Domestic Product

The monetary value of all of a nation's goods and services produced within a nation's borders and within a particular period of time, such as a year. It became the official measure of the U.S. economy in 1991. It replaced "gross national product," which covered all goods and services produced by U.S. residents regardless of where they were working.

Antitrust Law

Laws that seek to make sure businesses compete fairly, and prevent unfair partnerships

Trade Barriers

Trade barriers are usually protectionist; that is, they are erected to protect domestic producers who would not be able to compete successfully with foreign producers in a free market or in free trade.

Iron Law of Wages

the doctrine or theory that wages tend toward a level sufficient only to maintain a subsistence standard of living.

Balance of Trade

the difference between the values of exports and imports of a country, said to be favorable or unfavorable as exports are greater or less than imports.

Surplus Value

(in Marxian economics) the part of the value of a commodity that exceeds the cost of labor, regarded as the profit of the capitalist.

Corporate Profits

The dollars that exceed the costs of the corporation

Socialism

Large Government involvement in the economy

Market economy

No government involvement in the economy

Mixed Market economy

Limtited, but some, government involvement in the economy

Labor force

the amount of people in that currently have the ability to work

Real Take Home Pay

Salary that includes what is lost to inflation

Standard of Living

Illustrates what opportunities are expected for a certain person

Unions

Labor coming together to make sure they interests and rights are heard and respected.

Voluntary Exchange

Both traders expect to benefit as a result of an exchange between the two.

Production Possibilities Curve

Shows the maximum level of efficiency based on what resources are allocated where

Capital Resources

Actual hard equipment like factories and tractors

Inelastic

Demand does not change much if prices go up or down.