Econ-Eoc Flashcards
Dow Jones
stock market measure
increase: stock value increases
big companies
measure performance of stock
S+P 500
broader view
medium n big company
if big: good then smaller: good to
NASDAQ
stock market measure
tech companies
SEC
security n exchange commision
look into stock fraud
EPA
envir protection agency
pollution
FCC
tv/radio license
fed communic comm
FAA
federal aviation admin
airline safety
Capital
This is equipment and factories used in the production of goods and services.
Capital Good
A tool or equipment used to produce other goods.
Capitalism
This is an economic system where the factors of production are privately owned.
Command Economy
This is the general name for an economic system characterized by a central authority which makes major economic decisions.
Competition
In economics, this is a rivalry that may refer to rivalry among firms, or individuals, or the race to control resources.
Consumer Empowerment
This term is an economic and legal concept that buyers should have access to a full range of resources to make informed economic decisions.
Consumer Protection Laws
This term is an economic and legal concept that governments should use regulations to ensure the rights of buyers.
Consumer Sovereignty
In a market economy, this is the role of the customer as the ruler of the market; the customer decides what goods and services will be produced
Deregulation
This is the process of reducing or eliminating government regulations on an industry, allowing for more laissez-faire business practices. This has been a major issue in the airline, automobile, and power industries since the 1980s.
Division Of Labor
This is the process of separating the tasks in the the process of production and assigning different tasks to different workers.
Economic System
This is the way in which a society deals with the production, distribution, and consumption of goods and services.
Eminent Domain
This is the right of the government to take private property, like land, for public use.
Entrepreneur
This is a person who takes the risk of a new business enterprise.
Factors Of Production
land, labor, capital, and entrepreneurship.
Government Regulation
This refers to rules established at some level of government for the purpose of guiding business practices. Although it is commonly accepted that some guiding rules are benefitial to encourage competiton and promote the public good, it is also commonly accepted that it may increase the cost of doing business.
Harmful Spillover
This phrase refers to the impact of economic activity upon people who are not directly involved. This phrase describes when the impact is negative.
Helpful Spillover
This phrase refers to the impact of economic activity upon people who are not directly involved. This phrase occurs when that impact is positive.
Incentive
Any factor, usually financial, to influence one choice over another by an individual or business.
Investment
Although it has many definitions, this is generally the act of providing funds to a financial organization for the purposes of making that organization more profitable, while earning a personal profit at the same time.
Labor
This is one of the main factors of production. It is the measure of the work done by people.
Land
This is one of factors of production (productive resource), referring to anything that is taken from the earth during the production of a good or service.
Literacy Rate
This is the term that is used to describe the percentage of people in a country who have the ability to read and write.
Marginal Benefit
This is an additional or extra benefit associated with an action.
Marginal Cost
This is the change in the total cost of an item that occurs when the quantity produced changes by one unit.
Market Economy
This is an economy in which the government- ideally- has nothing to say about what, how, and for whom goods are produced; the factors of production are privately owned.
Mixed Economy
This is the name given to an economy that may contain market, command, and/or traditional economic systems.
Opportunity Cost
This is the value lost when one alternative is chosen over another.
Patent
This is a legally granted exclusive right to produce a product a process for a given period of time, usually to the inventor of that product or process.
Privatization
This is the conversion of state owned property to private ownership.
Production Possibilities
The term “___ ___ Frontier” (or Curve) is a diagram showing the maximum amount of goods and/or services an economy can produce.
Profit Motive
In a market economy, this is the driving force that encourages individuals and organizations to improve their material well-being.
Trade Off
This is an economic situation related to opportunity cost in which one thing is given up in order to do something else.
Voluntary Exchange
This is the act of buyers and sellers freely and willingly engaging in market transactions.
Welfare
Government support for the poor and otherwise disadvantaged members of the society, usually through provision of free and/or subsidized goods and services, such as house, food stamps, and healthcare.
Circular Flow Diagram
This is the two sector economic model showing how firms, or businesses, and consumers, or households, interact.
Complementary Product
This is a physical item that has an increase in demand when the price of another item decreases in Economics.
Corporation
A type of business organization where the business is recognized as a legal entity with the right to sell stock.
Demand
This is the amount of a good or service that consumers are willing and able to buy at a given price at a given time.
Demand Elasticity
his is the relationship between changes in the demand quantity of a good and the changes in its price.
elastic
This is when the demand for a product is highly responsive to changes in price.
Equilibrium Price
Determined by the intersection of the supply and demand curves on a graph
Factor Market
that part of the economy where labor and resources are sold
Inelastic
This is when the demand of a product is weakly responsive to price changes.
Limited Liability
This is the situation where the responsibility of an owner for the debt of a company is restricted to the amount invested in the firm.
Market
This is the arrangement where buyers and sellers learn information from one another and voluntarily exchange goods, services and money.
Market Economy
This is an economy in which the government- ideally- has nothing to say about what, how, and for whom goods are produced; the factors of production are privately owned.
Market Structure
This describes the state of a market with respect to competition.
Market Value
The ________ value of an item is the actual amount of money buyers are willing to pay for it.
Monopolistic Competition
This is a market structure where there are many producers selling differentiated products (substitutes but are not exactly alike), no one firm has total control over price, there are few barriers to entry, but consumers feel there are non-price differences between the goods sold.
Monopoly
This is when one company controls the market for a certain product, there is no competition.
Oligopoly
This is a market where a few large suppliers control the supply of a product.
Partnership
an unincorporated business owned and run by two or more people
Perfect Competition
This is a market form where no producer or consumer has the market power to influence prices. It is theoretical.
Price Ceiling
This is the term for the maximum legal price that can be charged for a product.
Price Floor
This is the lowest legal price that can be charged for a product.
Product Market
This is where goods and services are sold in the circular flow model of income in economic theory.
Profit
This is the difference between how much money a business makes and how much it costs to make their goods.
Profit Motive
In a market economy, this is the driving force that encourages individuals and organizations to improve their material well-being.
Resource Market
This is where labor and other factors of production are sold in the circular flow model of income in economic theory.
Services
In economic terms, this is something that someone does for you, like give you a haircut or teach you social studies.
Sole Proprietorship
This is an unincorporated business owned and run by one person.
Store Of Value
This is a function of money in which any commodity- such as gold or currency- can be saved for later use.
Substitute Product
This refers to a product that a purchaser may use in place of another product; if the demand for one goes up the demand for the other usually goes down.
Supply Elasticity
This is the responsiveness of the distribution of a good to the amount charged for a good in Economics
Central Bank
This is a financial institution responsible for the monetary policy of a country.
Consumer Price Index
This is an economic measure of inflation in the domestic economy, and is determined by tracking the prices of a specific set of goods and services purchased by the public.
Cyclical Unemployment
Unemployment that is caused by a downturn in the business cycle
Deflation
This is a general decrease in the level of prices.
Depression
This a general economic term that refers to prolonged period of economic decline with large numbers of unemployed, shrinking incomes, and general economic hardship.
Discount Rate
This is the interest rate charged by the Federal Reserve for loans to member banks.
Disposable Income
This is the economic term that refers to one’s total income that is left following the payment of all required taxes.
Excise Tax
This is a tax on production, transportation, sale or consumption of a certain good or service.
FDIC
This was a federally sponsored corporation which insures deposits in national banks and certain other qualifying financial institutions up to a stated amount.
Final Goods
This economics term refers to any tangible item that is produced and eventually consumed by the buyer; they are used when calculating GDP.
Frictional Unemployment
Unemployment caused by people changing jobs.
Government Deficit
This occurs when a government spends more money than it takes in.
Greenspan
This American economist was the Chairman of the Federal Reserve from 1987 to 2006.
interest Rate
The percentage of a financial loan which is paid as a fee over a period of time.
Open Market
This is a freely competitive market operating without government-imposed restrictions.
Open Market Transaction
This phrase refers to most stock market transactions where an investor purchases stock shares. In this situation, the purchase indicates that the investor believes that the stock will gain value.
Payroll Taxes
These are withholdings from employees’ wages paid to the federal, state, or local governments
Producer Price Index
This is an economic indicator that is computed by the Bureau of Labor statistics and is meant to measure the average change in prices received by US producers for their goods over a period of time.
Progressive Tax
a tax where the percentage paid in tax increases as the level of income rises
Recession
This is a decline in a country’s GDP for two or more successive quarters. It is usually characterized by a significant decline in economic activity.
Regressive
This is a type of taxation that takes a higher percentage of one’s salary as one’s income decreases.
Revenue
This is the total amount of money that is brought into a company or government by its business activities or taxation policies.
SPLOST
This tax can be levied by any county for the purpose of funding the building and maintenance of parks, schools, roads, and other public facilities.
Stagflation
This is a period of large price inflation combined with no output growth, increasing unemployment, and a recession.
Structural Unemployment
Unemployment that is caused by changes in technology or reduced demand for certain products.
Subsidy
This is financial assistance from the government to encourage the production of or the purchase of a good.
Unemployment Rate
This term refers to the percentage of the civilian workforce who are available for a job but do not have one.
ASEAN
This is a political and economic organization of 10 countries in Southeast Asia to improve economic growth.
Balance Of Payments
his measures the flow of payments between one country and all other countries.
Balance Of Trade
This is the difference in the monetary value of exports and imports for a country.
Commodity Money
This is a type of money whose value comes from the item form which it is made, often precious metals such as silver or gold.
Embargo
This is the process of prohibiting commerce and trade with another country. This is often done to affect the country to change an internal policy.
Exchange Rate
the value of one currency expressed in terms of another
Fixed Exchange Rate
This occurs when the value of a currency is matched to another currency or other value, such as gold.
Foreign Exchange Rate
This is the amount of currency that can be traded for another country’s currency at any given time.
NAFTA
This is an agreement signed in 1992 and put into effect in 1994 was created to reduce tariffs between the United States, Canada, and Mexico
Purchasing Power
This is the amount that money can buy.
Quota
This is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time.
Sanction
This is the name for a category of trade barriers that a country may impose on another country or countries.
Trade Surplus
This occurs when a country exports more than it imports.
Unfavorable Balance Of Trade
This is a situation that exists when a country imports more than it exports.
401k
This term refers to a specific investment plan that allows an employee to elect to have the employer contribute a portion of the employee’s wages to an individual account.
Bond
This is a contract to repay borrowed money, often issued by a company. This issues financial security for a debt.
Certificate Of Deposit
This type of investment account has a specific fixed term/length, fixed interest rate, is insured by the FDIC, and is very low risk to consumers.
Credit
Ability to obtain goods and services before payment, or money lent or made available, both with specific guidelines for repayment.
Credit Union
a nonprofit cooperative that accepts deposits, makes loans, and provides other financial services
Credit Worthiness
This is a measurement as to the likelihood of whether or not a person will default on a loan provided to them by a lending institution.
Current Yield
The annual interest rate paid by a bond. It does not reflect the interest rate paid over the life of the bond.
Deductible
The dollar amount of expenses that must be paid out of pocket before an insurer will pay any expenses for loss or liability.
Disability Insurance
A type of insurance paid to an individual if he/she is injured and is unable to work for a specified length of time.
Dividend
This is a portion of corporate profits paid to stockholders.
Earnings
This is a payment usually of money for labor or services usually according to contract and on an hourly basis.
Excise Tax
This is a tax on production, transportation, sale or consumption of a certain good or service.
Incentive
Any factor, usually financial, to influence one choice over another by an individual or business.
Individual Retirement Account
This is a type of investment account made by people in anticipation of turning an age in which they no longer work, and in which their investment is returned to them in installments.
Insurance
A form of risk management purchased by a business or individual against a possible financial loss paid in the form of a monthly or annual premium.
Interest
This is a total charge that is applied to a person when they borrow money.
Investment
Although it has many definitions, this is generally the act of providing funds to a financial organization for the purposes of making that organization more profitable, while earning a personal profit at the same time.
Lender
The institution or individual that loans money to an individual or business at a set interest rate over a set period of time.
Liability
To be at fault, either financially or legally.
Life Insurance
A special type of insurance paid to family or primary beneficiary at the time of death of the policy holder.
Loss In Insurance
he dollar amount of an insured’s financial injury by death or damage that the insurer is financially responsible; to lose money in an investment.
Money Market
A type of checking account that also earns interest. These accounts generally have a higher minimum balance.
Mutual Fund
A collection of investments, usually stocks, bonds, and other securities managed by a portfolio manager. The collective investment gains or loses value as a group. Generally the group of items spread the risk of items purchased individually. The net proceeds are passed to the individual investors.
Prime Rate
the lowest interest rate which banks charge their most reliable customers
Progressive Tax
a tax where the percentage paid in tax increases as the level of income rises
Proportional
This is a type of taxation that takes the same percentage of one’s income regardless of how much or how little one makes.
Regressive
This is a type of taxation that takes a higher percentage of one’s salary as one’s income decreases.
Sales Tax
This is a tax on goods and services, a percentage of the retail price.
SPLOST
This tax can be levied by any county for the purpose of funding the building and maintenance of parks, schools, roads, and other public facilities.
