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| Chairman of the Federal Reserve Board; controls flow of money |
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| 3 Main Tools the Fed Uses |
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| Discount Rate, Reserve Ratio, Open Market Operation (Buying/Selling Bonds) |
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| rise in the general level of prices |
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| decline in the real GDP lasting at least 2 quarters or more |
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| any fee representing the cost of credit, or the cost of borrowing |
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| Annual Percentage Rate; interest rate for a whole year |
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| Adjustable Rate Mortgage; mortgage loan where the interest rate on the note is periodically adjusted |
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| interest rate never changes |
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| Private Mortgage Insurance; insurance payable to lender or trustee for a pool of securities that may be required when taking out a mortgage loan |
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| complete control over product/service |
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| product/service controlled by a few companies |
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| counterfeit agreement among industries; informal organization of producers that agree to coordinate prices and production (price fixing, total industry output, market shares, allocation of customers, bid rigging, etc) |
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| perfect being a market in which there are many small firms, all producing homogeneous goods; efficient in the long term |
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| duty imposed on goods when they are moved across a political boundary (normally associated with the restraining of trade between nations) |
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| government policy to encourage export of goods and discourage sale of goods on the domestic market through low-cost loans or tax relief for exporters, or government financed international advertising |
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| a favorable balance of trade (difference between the monetary value of exports and imports in an economy over a certain period of time); exporting more than is imported |
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| unfavorable balance of trade; importing more than exporting |
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| legal entity separate from the persons that form it; body corporate formed to conduct business; work together to produce value and generate income |
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| business entity which legally has no separate existence from its owner; all debts of the business are debts of the owner |
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| business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested; favored over corporations for taxation purposes (doesn’t incur a tax on profits before it is distributed) |
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| exclusive right to product/process (legal monopoly); temporary |
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| symbol to identify product |
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| protect property and creativity for lifetime+50 years |
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| statistical series that tracks monthly changes in prices paid by urban consumers for a representative “basket” of goods and services (compares base year price to another time period) |
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| World Trade Organization; international organization designed by its founders to supervise and liberalize international trade |
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| General Agreement on Tariffs and Trade; outcome of the failure of negotiating gov’ts to create the ITO; replaced by WTO; regulate trade as a part of a larger plan for economic recovery after WW2 |
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| North American Free Trade Agreement; trilateral trade bloc in N America created by US, Canada, & Mexico |
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| Gross Domestic Product; basic measure of an economy’s economic performance, is the market value of all final goods and services produced within the borders of a nation in a year |
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| Gross National Product; value of all final goods and services produced in a country in 1 year by the nationals, plus income earned by its citizens abroad, minus income earned by foreigners in the country |
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| measure of the size of an economy adjusted for price changes and inflation |
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| the government or workers’ councils manage the economy; central government makes all decisions on the production and consumption of goods and services |
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| anyplace where persons trade and goods and services are exchanged, forming part of the economy |
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| economic system in which wealth and the means of producing wealth are privately owned; everything is owned, operated, and traded for the purpose of generating profits, without force or fraud, by private individuals & investments, etc |
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| advocates state or cooperative ownership and administration of the means of production and distribution of goods, and a society characterized by equal opportunities/means for all individuals; transitional stage between capitalism and communism |
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| Scottish moral philosopher and a pioneer of political economy; key figure of the Scottish Enlightenment; author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations |
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| German credited as the founder of communism; The Communist Manifesto |
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| renowned British economist; advocated a gov’t that played an active role in the lives of people regarding business and the economy |
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| agreement, usually secretive, which occurs between two or more persons to deceive, mislead, or defraud others of their legal rights, or to obtain an objective forbidden by law typically involving fraud or gaining an unfair advantage; agreement among firms to divide the market, set prices, or limit production |
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| international financial institution that provides financial and technical assistance to developing countries for development programs with the state goal of reducing poverty |
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| situations where the advancement of a qualified person within the hierarchy of an organization is stopped at a lower level because of some form of discrimination |
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| economic indicator; found by adding the unemployment rate to the inflation rate |
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| must join Union upon hiring |
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| must be union member before you get job |
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| inflation and economic stagnation occur simultaneously and remain unchecked for a period of time |
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| set of rates designed primarily to raise money for the government |
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| intended to artificially inflate prices of imports and protect domestic industries from foreign competition |
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| Reciprocal Trade Agreement Act |
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| provided for the negotiation of tariff agreements between the US and separate nations; reduction of duties |
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| Organization of the Petroleum Exporting Countries; cartel of 12 countries; determination of the best means for safeguarding the cartel’s interests, individually and collectively; pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations |
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| loans over $420,000; higher interest rate because higher risk |
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| Cost of Living Adjustment |
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| fee paid on borrowed assets; price paid for the use of borrowed money |
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| original amount of a debt or investment on which interest is calculated |
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