Business and Economics Flashcards
A mathematician who uses statistics to calculate insurance premiums
Actuary
Author of book titled “Affluent Society”
Galbraith
The paying off of debt over a period of time or the depreciation of the book value of an asset
Amortization
A sum of money paid yearly (such as retirement)
Annuity
The appraisal of property by the government for taxation purposes
Assessment
Am exchange of goods and services for others, no money involved
Barter
The electronic board at the NYSE (or NYSE itself)
The Big Board
Nickname for General Motors, Ford, and Chrysler
The Big Three
Trade between two countries
Bilateralism
Goods used in the production of commodities by businesses or governments
Capital Goods
Scottish businessman who made millions in the steel industry. Eventually sold his interests and donated most of his fortune. A famous concert hall in NYC is named after him
Andrew Carnagie
Latin for “let the buyer beware”
Caveat Emptor
Organized food harvesters in California in the 1960s. Created United Farm Workers union
Cesar Chavez
A business that only hires union workers or joining the union is the requirement for employment (aka union shop)
Closed Shop
A company or individual who provides public transport
Common Carrier
A holding company with a diversified portfolio typically consisting of many unrelated businesses
Conglomerate
A report published by the government to show the costs of goods and services
Consumer Price Index
The government practice of borrowing money instead of raising taxes
Deficit Financing
Who created the Law of Diminishing Return?
David Ricardo
Interest charged by the fed to banks
Discount Rate
A corporation getting rid of a subsidiary company or division
Divestiture
The insurer pays double if there is an accidental death
Double Indemnity
An index of the price movement of 30 major companies mostly traded on the NYSE
Dow Jones Industrial Average
A stand in for a director until the stock holders can elect someone
Dummy
A tax charged by the government, especially on imports
Duty
Federal policy that makes cash easily available by setting low interest rates
Easy Money Policy
Created in 1957 with the Treaty of Rome for free trade and cooperation between nations. France, Benelux, Germany, Italy are the founders. (aka EEC, EC, Common Market)
European Economic Community
Shift in supply and demand depending on price
Elasticity
The stealing of money entrusted to one’s care
Embezzlement
The right of the government to take private property for public purpose. Usually involves fair compensation for the owner
Eminent Domain
From Houston, filed for Chapter 11 bankruptcy in Dec 2011. They were the seventh largest corporation in the US at the time and were inflating earnings by hiding debts and losses in subsidiaries
ENRON
A bond, deed, or other document kept in the custody of a third party and taking effect only when certain conditions are met
Escrow
A tax imposed on some goods (e.g.: luxuries, cars, etc)
Excise Tax
A restriction set by the government with intent to keep prices low in home country
Export Quota
The act of the government taking private property, often without compensation to owner
Expropriation
1993 Act that requires employers to grant absence for illness, newborns, or caring for ill family
The Family & Medical Leave Act
The practice of requiring an employer to hire more workers than needed for a job
Featherbedding
Created in 1933, the FDIC insures deposits in most US banks
Federal Deposit Insurance Corporation
Created in 1913, The FED supervises twelve federal banks which deal with other banks instead of the general public
Federal Reserve System
Created in 1914, the FTC enforces antitrust legislation and prevents false advertising to protect consumers
Federal Trade Commission
Created in 1935, FICA are taxes deducted from most Americans (both employer and employee) to support social security programs
Federal Insurance Contributions Act
When the currency’s price is determined by market conditions
Floating Exchange Rate
American economist in the 20th century who defended free enterprise, attacked government regulation, and called socialism an economic failure
Friedman
A payment in addition to salary (e.g.: healthcare, 401K, vacation, etc)
Fringe Benefit
The term used when the population hits 96% or higher of total potential workforce
Full Employment
The oversupply of goods on the market
Glut
A guarantee of benefits if a top executive loses their position
Golden Parachute
The concept that bad money will drive good money out of circulation
Gresham’s Law
The amount exclusive of deductions (prior to taxation)
Gross
Which countries are in the Group of 8? (G8)
UK, Canada, France, Germany, Italy, Japan, Russia, USA
Called the IMF, an agency where wealthy nations lend money to developing nations
International Monetary Fund
Called the ICC, it regulates commerce that takes place in multiple states (e.g.: trucking industry)
Interstate Commerce Commission
An Adam Smith term that individuals seeking self-interest will end up benefiting society more than through direct effort
Invisible Hand
A three-part Marx work (1861/1885/1894) that states that capitalism will be bested by socialism
Das Kapital
A 20th century British economist who rejected traditional theories of the free market and advocated for vast government spending even during recessions
Keynes
The ceasing of work by an employer during a labor dispute (opposite of a strike)
Lockout
A late 18th / early 19th century British economist who was concerned with overpopulation
Malthus
Helped Marx with Communist Manifesto and other works
Engels
The European economic doctrine popular in the 16th-18th centuries that says a nation’s wealth is tried to the amount of gold and silver in its treasury. Many nations at the time restricted imports to favor exports
Mercantilism
A financier who lived in the late 19th / early 20th century. Formed the US Steel Corporation in 1901 which was considered the world’s first billion dollar company
JP Morgan
These are issued by nonprofits and are exempt from income tax
Municipal Bonds
An American lawyer who attacked multiple industries for unsafe practices and also ran for president in 1996, 2000, 2004, and 2008. A famous attack against the US auto industry was in his book “Unsafe at Any Speed”
Ralph Nader
The amount that remains after deductions
Net
The control of production and sale by a few companies
Oligopoly
The idea that work expands to fill the time available for its completion
Parkinson’s Law
Forced labor based on debts incurred by workers (rubber industry in Brasil was an example of this)
Peonage
The interest banks charge to corporations which is always lower than to consumers
Prime Rate
A Sismondi term to describe the working class. Marx referenced it multiple times
Proletariat
A person authorized to act for another
Proxy
A return of cash after a good is purchased compared to a discount which is offered at the time of purchase
Rebate
A term applied to certain leading businessmen at the turn of the 20th century (e.g.: Vanderbilt, Rockefeller)
Robber Barons
The founder of Standard Oil Company and the richest man in the world at his time of retirement
John D. Rockefeller
A worker who stays on while others strike or who is hired in place of strikers
Scab (Strikebreaker)
Written evidence of ownership or creditorship
Securities
Created in 1929 in the aftermath of the Wall Street crash and called the SEC, this government organization protects investors against malpractice by enforcing laws against market manipulation.
Securities and Exchange Commission
An 18th century economist from Scotland, he was called the forefather of capitalist thinking and wrote “The Wealth of Nations”
Adam Smith
Sluggish economic growth and high inflation (happened in the late 1960s and throughout the 1970s)
Stagflation
A tax added to an existing tax (e.g.: income tax added in 1968 for Vietnam War)
Surtax
A type of investment that reduces taxable income
Tax Shelter
The control of government and society by people with tech skills
Technocracy
A group of companies that price fixes
Trust
Government activities aimed at breaking up trusts and monopolies
Trust Busting
The practice of charing more than the legal interest rate
Usury
A VAT which is commonly used in the EU, raises taxes “invisibly”
Value Added Tax
American tycoon who made his fortune in shipping and then railroads
Cornelius Vanderbilt
Who said “The public be damned!”
William Henry Vanderbilt
Stock issued at an inflated price
Watered Stock
The former secretary of defense under Eisenhower who said “What’s good for the country is good for GM and vice versa”
Charles E. Wilson
This is called in violation of existing contract between labor and management
Wildcat Strike
An unexpected profit or inheritance
Windfall
