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Vocab for Econ exam
exam
Term | Definition |
---|---|
Absolute Advantage | the ability of a party (an individual, or firm, or country) to produce more |
Adam Smith | advocated private enterprise and free trade |
Balance of Trade | the difference in value over a period of time of a country's imports and exports of merchandise |
Capital Resources | human-made goods, tools, machines and buildings used to produce other goods and services |
Circular Flow | In neoclassical economics, the terms circular flow of income or circular flow refer to a simple economic model |
Command Economy | production, investment, prices, and incomes are determined centrally by a government. |
Comparison shopping | One of the most important factors of getting a great interest rate is how much you shop around |
Comparison Advantage | |
Competition | An event or contest in which people compete. |
Credit | The ability to obtain goods or services before payment, based on the trust that payment will be made in the future |
Demand | An insistent and peremptory request, made as if by right. |
Discretionary Income | Income remaining after deduction of taxes, other mandatory charges, and expenditure on necessary items. |
Disposable income | Income remaining after deduction of taxes and other mandatory charges, available to be spent or saved as one wishes. |
Diversity | The state of being diverse; variety. |
Economic Growth | steady growth in the productive capacity of the economy |
Economics | The branch of knowledge concerned with the production, consumption, and transfer of wealth. |
Entrepreneur | A person who organizes and operates a business or businesses, taking on financial risk to do so. |
Exchange Rate | The value of one currency for the purpose of conversion to another |
Fiscal Policy | a government policy for dealing with the budget |
Gross Income | United States tax law is receipts and gains from all sources less cost of goods sold. |
Human Resources | The personnel of a business or organization, esp. when regarded as a significant asset. |
Incentive | A thing that motivates or encourages one to do something: "incentive to conserve. |
Inflation | The action of inflating something or the condition of being inflated. |
Interest | The state of wanting to know or learn about something or someone: "many people lose interest in history |
Karl Marx | |
Liquidity | The availability of liquid assets to a market or company |
Market | A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities. |
Market Economy | an economy that relies chiefly on market forces to allocate goods and resources and to determine prices. |
Market-Clearing Price | Price determined by buyers and sellers in a free market.. |
Monetary Supply | |
NAFTA | North American Free Trade Agreement. |
Opportunity Cost | The loss of potential gain from other alternatives when one alternative is chosen. |
Principle | A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning. |
Private Property | movable property |
Profit | A financial gain, esp. the difference between the amount earned and the amount spent in buying, operating, or producing something. |
Progressive tax | any tax in which the rate increases as the amount subject to taxation increases |
Proportional Tax | any tax in which the rate is constant as the amount subject to taxation increases |
Purchasing power | the number of goods/services that can be purchased with a unit of currency |
Rationing | Allow each person to have only a fixed amount of (a particular commodity) |
regressive tax | a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases |
requires reserves | is a state bank regulation that sets the minimum reserves each bank must hold to |
Resource Market | markets in which economic resources are traded |
Saving | An economy of or reduction in money, time, or another resource. |
Scarcity | a small and inadequate amount. |
Shortage | something needed cannot be obtained in sufficient amounts: "a shortage of hard cash"; "food shortages". |
Supply | Make (something needed or wanted) available to someone; provide: "the farm supplies apples to cider makers". |
Surplus | An amount of something left over when requirements have been met; an excess of production or supply over demand. |
Tariff | A tax or duty to be paid on a particular class of imports or exports. |