economic terms Flashcards
bankruptcy
The legal status of a debtor who cannot pay his debts
capitalism
Private ownership–based economic system
communism
Economic system in which the people control the means of production
consumer price index (CPI)
Measure of changes in the prices of consumer goods
credit
Acquiring a good or service and paying for it later
debt
money owed
depression
A severe, long-term recession
expansion
Period of increased economic activity
federal deposit insurance (FDIC)
Guarantees the security of deposits in banks
federal reserve board of governors
Group that oversees the central banking system of the United States
federal trade commissions (FTC)
Protects consumers by opposing anticompetitive business methods
gift economy
A culture in which goods are given without an agreement for reciprocation
gross national product (GNP)
Value of products and services produced by a country in a year
heterodox economics
Economic schools of thought that are not mainstream
inflation
The rise of prices over time
interest
A fee paid to borrow money, expressed as a percentage of the money borrowed
labor union
Group of workers united to achieve common goals that would better their conditions of employment, known as a “trade union” in British English
market
System in which parties exchange with each other
mass production
Creating great amounts of products on assembly lines
monopoly
A single entity is the only supplier of a specific good or service
protectionism
Government regulating trade between countries to promote domestic trade
recession
Period of a slowdown of economic activity
socialism
Social ownership–based political system
old-age, survivors, and disability insurance (OASDI)
Federal program. The original Social Security Act (1935) and the current version of the act, as amended, encompass several social welfare and social insurance programs
subsidy
Money paid by a government to a business or industry to help it or to encourage specific behavior
supply and demand
Model for determining prices of goods in a competitive market
