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Economics
Semester Final
term /definition or | question/ answer |
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public good | a shared good or service for which it would be impractical to make consumers pay individual & exclude nonpayers. |
Scarcity | limited quantities of resources to meet unlimited wants. |
Externality | an economic side effect of a good/service that generates benefits/costs to someone other than the person deciding how much to produce/consume. |
Competition | the struggle among producers for the $ of consumers; the rivalry among sellers to attract customers while lowering costs. |
capital | any human-made resource that is used to create other goods/services. |
macroeconomics | the study of the behavior/decision making of entire economics. |
demand | the desire to own something & the ability to pay for it. |
Equilibrium | the point at which quantity demanded & quantity supplied are equal. |
surplus | situation in which quantity supplied is greater than quantity demanded; also known as excess supply. |
merger | combination of 2 or more companies into a single firm. |
deregulation | the removal of some govt controls over a market. |
profit | the financial gain made in a transaction. |
market | an arrangement that allows buyers & sellers to exchange. |
Trade-off | an alternative we sacrifice when we make a decision. |
opportunity cost | the most desirable alternative given up as the result of a decision. |
patent | a license that gives the inventor of a new product the exclusion right to sell it for a certain period. |
laissez-faire | the doctrine that states that govt generally should not intervene in the marketplace. |
money | anything that serves as a medium of exchange, a unit of account, and a store of value. |
principal | the amount of money borrowed. |
stock | a certificate of ownership in a corporation. |
interest | the price paid for the use of borrowed money or money earned by deposited funds. |
assets | money & other valuables belonging to an individual or business. |
FDIC | federal deposit insurance corporation, the govt agency that insures customer deposits if a bank fails. |
CPI | consumer price index, a price index determined by measuring the price of a standard group of goods meant to represent the typical "market basket" of a typical urban consumer. |
SEC | Securities and Exchange commission, an independent agency of the govt that regulates financial markets & investment companies. |
GDP | Gross domestic product, the total value of all financial goods & services produced in a particular economy the $ value of all final goods & services produced w/in a country's borders in a year. |
GNP | Gross national product, the annual income earned by U.S. owned firms & U.S. residents. |
APR | Annual percentage rate, a financial charge expressed as an annual rate. |
Factors of Production | Land, labor, capital and entrepreneurship. Entrepreneurs use these resources to make new products that may or may not make them money. |
types of economies | traditional (Amish), market/free market (united kingdom), capitalism (germany), Command/centrally planned (china), mixed (United states). |
types of cost | fixed (does not change), variable (rise or fall), total cost( fixed + variable), marginal ( additional cost of producing 1 or more units). |
stock exchange | A market for buying or selling stock, NASDAQ, AMEX, NYSE. |
FICA | federal insurance contributions act, taxes that fund social security and medicare. |
principles of free enterprice | profit motive, open opportunity, economic rights. |
social security | old age, survivors, and disability insurance, provide benefits to surviving family members of way earners and to people whose disabilities keep them from working. |