11.D Lesson - Economics Flashcards
Agent
a representative who acts on behalf of others
Capacity
capability to perform or produce
Capitalism
an economic system based on private ownership of assets
Commodity
any good that can be bought and sold
Competition
the act of contending with others for rewards or resources
Compound interest
interest calculated on both the principal and the accrued interest
Consumption
the act of using something up
Credit
an estimate of ability to fulfill financial commitments
Debt
the state of owing something, especially money
Deficit
an amount that is less than expected or required
Demand
the quantity of a commodity or service wanted at a specified price and time
Depression
a reduction in activity, amount, quality, or force
Devaluation
the reduction of something’s worth
Diversification
the act or practice of spreading investments among a variety of securities or classes of securities
Econometrics
the application of mathematics and statistics to the study of economic and financial data
Efficiency
skillfulness in avoiding wasted time and effort
Equity
the money value of a property or of an interest in a property in excess of claims or liens against it
Fiscal policy
a government policy for dealing with the budget
Free trade
the exchange of goods without governmental interference
Full employment
the economic condition when everyone who wishes to work at the going wage rate for their type of labor is employed
GDP
the measure of an economy adopted by the United States in 1991; the total market values of goods and services produced by workers and capital within a nation’s borders during a given period (usually 1 year)
Globalization
the development of an increasingly integrated global economy marked especially by free trade, free flow of capital, and the tapping of cheaper foreign labor markets
Gold standard
system that defines money’s value in terms of precious metal
Incentive
a positive motivational influence
Income
the amount of money one makes over a period of time
Inflation
a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services
Interest rate
the percentage of a sum of money charged for its use
Liquidity
capable of ready conversion into cash
Macroeconomics
the branch of economics that studies the overall working of a national economy
Microeconomics
the branch of economics that studies the economy of consumers or households or individual firms
Minimum wage
the lowest salary that an employer is allowed to pay
Monopoly
a market in which there are many buyers but only one seller
National debt
the debt of the national government
Opportunity cost
the benefits lost by choosing one option over another
Poverty
the state of having little or no money and possessions
Profit margin
the difference between the total cost of making and the price it is sold for
Quota
a prescribed number
Regulation
the act of bringing to uniformity
Risk
a source of danger
Scalability
the ability of a business to grow larger
Scarcity
a small and inadequate amount
Short-run
relating to or extending over a limited period
Socialism
a political theory advocating state ownership of industry
Stagnation
a state of inactivity
Stakeholder
one who has an interest in something, especially a business
Supply
the quantity or amount (as of a commodity) needed or available
Tariff
a government tax on imports or exports
Transparency
the quality of being clear
Unemployment
the state of not having a job
Volatility
the quality of being unpredictable and affected by emotion
Welfare
something that aids or promotes well-being
