Economic Semester Test Vocab Flashcards
Bond
A formal contract to repay borrowed money with interest and fixed intervals
Traditional economy
Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services
Incentitives
An exception that encourages people to behave in a certain way
Zoning law
Law in a city or town that designates separate areas for residency and for the business
Transition
Period of change in which an economy moves away from a centrally planned economy toward a market-bases system
Collective
Large farm leased from the state to groups of peasant farms
Trade association
Non profit organization that promotes the interest of a particular industry
Communism
Political system characterized by a centerly planed economy with all economic and political power resting in the hands of the central government
Authoritarian
Requiring strict obedience to an authority, such as a dictator
Dividend
Portion of corporate profits paid out to stockholders
Economic system
Method used by a society to produce and distribute goods and services
Limited partnership
Partnership which only one partner is required to be a general partner
Factor payments
Income people receive for supplying factors of production; land, labor, or capital
Standard of living
Level of economic prosperity
Cooperative
Business organization owned an operated by a group of individuals for their mutual benefits
Free enterprise
Economic system characterized by private or coir pirate ownership of capital goods; investments that are determined by private decision rather that by state control; and determined in a free market
Sole proprietorship
Business owned and managed by a single individual
Self interest
One’s own personal gain
Business organization
An establishment formed to carry on commercial enterprise
Business license
Authorization to start a business issued by the local government
Assets
Money or other valuables belonging to an individual or business
General partnership
Partnership in which partners share equally in both responsibility and liability
Product market
Market in which, households purchase the goods and services that firms purchase
Privatize
Sell to individuals state-run firms, which are then allowed to compete with one another in the marketplace
Horizontal merger
Combination of two or more firms competing in the same market with some good or service
Stock
Certificate of ownership in a corporation
Laissez faire
Doctrine that states that government generally should not intervene in the market place
Nonprofit organization
Institution that functions much like a business, but does not operate for the purpose of generating profits
Corporation
Legal entity owned by individual stockholders
Continuum
Range with no clear division
Liability
Legally bound obligation to pay debts
Safety net
Government programs that protect people experiencing no favorable economic conditions
