Economics review for final

1. Scarcity -The demand for something whether it be a service or good that is greater than the availability of that good or service.

2. Barter- Exchange for other goods or services without using money.- Taylor

3. Capital in economics: In economics, capital refers to wealth or assets used to produce more wealth, such as money, buildings, or machinery.

4. Opportunity Cost- money or benefits lost by not selecting a particular option during the decision-making process

5. GDP - GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given time

6. GDP Per Capita-Our economic output per person, shows more of an accurate depiction 

7. Traditional Economy- A traditional economy is an economic system that is rooted in culture, location, customs, tradition and needs rather than being centered around making a profit. It usually consists of small groups where the production of goods is done to sustain the group.  Bartering/ trading. Driven by religion and customs 

8. Command Economy- an economy in which production, investment, prices, and incomes are determined centrally by a government

9. Capitalist Market Economy- The citizens and private people, the concept is the invisible hand (whatever people want people will make)

10. Mixed Economy - An economy with both market and command economy systems.

11. Karl Marx - Communism -  a social, political, and economic theory that examines the effect of capitalism. It advocated for a classless system in which all property and wealth are owned communally rather than privately owned.

12. Adam Smith - Free Market Capitalism - a market that is free from all forms of economic privilege, monopolies and artificial scarcities

13. John Maynard Keynes - Mixed Economy- Government helps the economy stabilize, started being used after the Great Depression

14. Invisible Hand- A metaphor for the unseen forces that move the free market economy.

15. Monopoly- the exclusive possession or control of the supply of or trade in a commodity or service(sole supplier of good or service)

• The government can intervene if necessary

16. Perfect Competition - occurs when there are many sellers and buyers control the price.

17. Monopolistic Competition - is when many different companies offer products that are similar to each other but not exact substitutes

18. Law of Demand - is a product has a higher price, consumers will demand a lower quantity or amount of a good

19. Equilibrium Price - A condition or state in which economic forces are balanced

20. Globalization -  how trade and technology have made the world into a more connected and interdependent place

21. Equilibrium Price- Equilibrium quantity is when there is no shortage or surplus of an item. The supply matches demand, prices stabilize and, in theory, everyone is happy.

22. Globalization - the process where a business or other organization develops internationally

23. Comparative Advantage -Pranav -  an economy's ability to produce a particular good or service more efficiently and economically than others 

24. Absolute Advantage -The ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time.

25. Tariff - a tax that has to be paid on an imported good

26. NAFTA - The North American Free Trade Agreement (NAFTA) established a free-trade zone in North America. It allows companies to ship goods to Canada and Mexico.

27. Fiat Currency - it is government-issued currency that is not physical such as gold or silver, like bitcoin

28. Exchange Rate - Appreciation - is the increase in the value of one currency relative to another. For example, if dollars to euros exchange rate moved from 1.00 to 1.15, the euro appreciated by 15% against the dollar

29. Fiscal Policy to control inflation - to reduce the total level of spending, the government increases taxes.

30. Monetary Policy to control inflation - monetary policy can increase interest rates which makes borrowing more expensive and reduces the total cost. Federal reserve

31. Consumer Price Index - an index with variation in prices typically paid by a consumer for retail goods and other items. How do we know inflation is occurring? Measure of inflation. The average price of goods in a country.

32. Trade Union - an organized association of workers in a profession or job, formed to protect and further their rights and interests.

33. Business Cycle Diagram - a graph that shows the rise and fall in output of production of goods or services over time. Expansion, peak, contraction, 

34. Budget - a plan that is written down to help decide how to spend money each month and what you can afford

35. Stock Index - the SNP 500.  A bunch of stocks that are weighed differently to show how the stock market is doing

36. Regressive Tax - taxes everyone the same, “flat tax”

37. Excise Tax - cigarettes, tobacco, alcohol, destroying environmental products

38. Scholarship - money awarded to go to college that does not need to be paid back

39. Credit Score Make-Up: the most important thing is your payment history

40. Loan Term - the amount of time it takes to pay back a loan

41. Stock - A stock represents a share in the ownership of a company

42. Diversification - Varying out your investments.

43. Paycheck Deductions -  things that get taken out of your paycheck; taxes, 401K

44. Dependants a person who depends on another person in a family, usually the kid. This is for other financial support

45. Insurance Deductible -  the maximum you have to pay when something happens to you or your property; once you reach your deductible count for one full year you do not have to pay anything 

46. In Network - a place such as a healthcare provider that is covered by your insurance provider

47. Collision Insurance - insurance for when someone damages your property, covers your car

48. Liability Insurance - insurance for when you are responsible for damaging someone 

else's property covers everything else 

49.  Copay- How much do you have to pay for your prescriptions or minute clinic care?

50. World Trade Organization - Try to lower trade barriers

51. International Monetary Fund - handles monetary (money) making sure economies are stable.

52. Tight Policy and Loose Policy - Tight money policy the government wants to take money out of the system. Loose policy is loose money giving money away to the public

53. Patent - Similar to a copyright or trademark. Document declaring that an idea or invention is yours no one can copy it.

54. Externalities - Side effects Mostly negative some positive– Ex: Pollution (from driving your car)

55. Refundable Tax Credit - Give the government too much tax money in the end they give you the money back.

56. Indirect Tax - Tax that gets added indirectly through the process of building the product (all the money that is added to the initial value of the product due to taxes)

57. Net Pay - One’s income after taxes and deductibles. 

58. FAFSA - Federal student aid form to help pay for college. 

59. FICO - Your credit score 

60. Amortization Table - the entire payment schedule for your lone 

61. Capital Gains Tax - Taxes on the money you earn through interest, crypto, bonds, stocks, and property. (cash on assets that you earn outside your normal income) 

62. W-4 - It tells you the amount of credits, other income, and deductions; claim your dependents. 

63. W-2 - A federal wage and tax statement that is given to an employer

64. Down Payment - 20% of money on a car or a house. 

65. Private Mortgage Insurance - protects the lender—not you—if you stop making payments on your loan.

66. Debt to Income Ratio- the amount of money you earn versus the amount of money you are in debt. Is used to show loans

67. Disposable Income -  It is the total personal income minus current income taxes, money after taxes

68. Social Security Number - Tracks social security benefits.

69. Payroll Tax -The taxes employees and employers pay on salaries.

70. Financial Award Letter - A document sent to a student from a college or university that shows how much financial help a student can get. 

71. Fixed Interest Rate - A loan where the interest rate doesn't change during the time of the loan.

72. Variable Interest Rate-  An interest rate that changes over time 

73. Supply Chain- The sequence and process of production of a product 

74. Regulatory Agencies - Independent government established by the legislative act to set standards in specific fields 

75. Compound Interest- Interest made up of a big sum.

76. 401K- Employer-sponsored personal pension account. 

77. Safe Investments (Bonds, Savings Account)- Investments with a good return on investment and low risk. 

78. Scam - Bait and Switch