Vocabulary Flashcards
A formal contract to repay borrowed money with interest at fixed intervals.
Bond
Economic system that relies on habit, custom, or ritual to decide questions of production and consumption of goods and services.
Traditional economy
An expectation that encourages people to behave in a certain way.
Incentive
Law in a city or town that designates separate areas for residency and for business.
Zoning law
Period of change in which an economy moves away from a centrally-planned economy Toward a market-based system.
Transition
Large farm leased from the state to groups of peasant farmers.
Collective
A political system characterized by a centrally planned economy with all economic and political power resting in the hands of the central government.
Communism
Requiring strict obedience to an authority, such as a dictator.
Authoritarian
The portion of corporate profits paid out to stockholders.
Dividend
The method used by a society to produce and distribute goods and services.
Economic system
The income people receive for supplying factors of production: land, labor, or capital.
Factor payments
Partnership in which only one partner is required to be a general partner.
Limited partnership
Nonprofit organization that promotes the interests of a particular industry.
Trade association
Level of economic prosperity.
Standard of living
A business organization owned and operated by a group of individuals for their mutual benefit.
Cooperative
An economic system characterized by private or corporate ownership of capital goods; investments that are determined by private decision rather than by state control; And determined in a free market.
Free enterprise
A business owned and managed by a single individual.
Sole proprietorship
One’s own personal gain.
Self-interest
An establishment formed to carry on commercial enterprise.
Business organization
Authorization to start a business issued by the local government.
Business license
Money and other valuables belonging to an individual or business.
Assets
Partnership in which partners share equally in both responsibility and liability.
General partnership
The market in which households purchase the goods and services that firms produce.
Product market
To sell to individuals state-run firms, which are then allowed to compete with one another in the marketplace.
Privatized
The combination of two or more firms competing in the same market with the same good or service.
Horizontal merger
A certificate of ownership in a corporation.
Stock
The doctrine that’s states that government generally should not intervene in the marketplace.
Laissez faire
Institution that functions much like a business, but does not operate for the purpose of generating profits.
Nonprofit organization
Government programs that protect people experiencing unfavorable economic conditions.
Safety net
The legally bound obligation to pay debts.
Liability
A range with no clear divisions.
Continuum
A legal entity owned by individual stockholders.
Corporation
