Unit III Vocab 1 - Economics / Regulatory Flashcards
What is Consumer Price Index?
A measure of average change over time in the prices paid by consumers for market basket of consumer goods and services
What is Unemployment Rate?
Represents the number of unemployed people as a percentage of the labor force
What is Debt?
A financial liability or obligation owed by one person, the debtor, to another, the creditor
What are Taxes?
Mandatory contributions levied on all individuals/corporations by a government entity
What is the Federal Reserve?
The central bank of the United States which provides the nation with a safe, flexible, and stable financial system
What is Fiscal Policy?
The use of government spending/tax policies to influence economic conditions
What is Reserve Requirement?
The amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals
What is a Recession?
A sustained period of weak or negative growth in real GPA, accompanied by a significant rise in unemployment rate
What is Budget?
A spending plan based on income and expenses
What are Economic Goals?
The interconnected production, consumption, and trade activities that facilitate resource management of a nation/organization
What is a Market Failure?
A situation defined by an inefficient distribution of goods and services in the free market (Supply/demand dysfunction)
What is Consumer Spending?
The total money spent on final goods and services by consumer individuals and households
What is Gross Domestic Product (GDP)?
The total value of goods produced, and services provided in a nation during one (fiscal) year
What is Inflation?
The overall general upward price movement of goods and services in a country
What is a Deficit?
The amount by which something, especially a sum of money, is too small/does not meet requirements
What is the Business Cycle?
A type of fluctuation found in the aggregate economic activity of a nation
What is a Monetary Policy?
A set of actions to control a nation’s overall money supply and achieve economic growth
What is Discount Rate?
The interest rate used to determine the present value of future cash flows in a discounted cash flow (DCF) analysis
What are Open Market Operations?
Buying and selling U.S Treasury secretaries, along with other securities on the open market in order to manage the money supply
What is an Economic Depression?
An extreme recession that lasts three or more years which leads to a decline in real GDP
What is Circular Flow?
The unending flow of the production of goods and services, income, and expenditure in an economy
What is the Environmental Protection Agency (EPA)?
Independent executive agency of the U.S federal government tasked with environment protection matters
What is the Federal Trade Commission (FTC)?
Independent executive agency of the U.S federal government tasked with the enforcement of civil antitrust law and the promotion of consumer protection
What is the Federal Aviation Administration (FAA)?
Independent executive agency of the U.S federal government tasked with issuing and enforcing regulations/minimum standards covering manufacturing, operating, and maintaining aircraft
