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| the amount paid to purchase insurance protection |
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| the value of a good or service stated in money terms |
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| "the price for a particular good or service fixed, usually by government, at some maximum level above which the market price is not permitted to rise; If the price ceiling is set below the market clearing price, a market shortage will result. Example: rent controls" |
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| "a price for a particular good or service fixed usually by government, at some level below which the market price is not permitted to fall (minimum); If the price floor is set above the market clearing price, a market surplus will result. Example: minimum wage" |
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| a weighted average of prices used to compare price levels in one time or place with price levels at another time or place; see consumer price index |
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| a system using the interaction of supply and demand and free markets to allocate scarce resources in providing goods and services to meet human wants |
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| "the actual amount of money being borrowed, before interest is added" |
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| interest which banks charge their biggest and best customers |
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| business activities not controlled by government regulations |
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| "property (things) owned by one person or a group of people (my bicycle, our house); each person having control over his/her private property and the right to receive the benefit from the use of the property unless it infringes on the rights of others—basis for capitalism" |
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| "people who use resources to make goods and services, also called workers or labor" |
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| "tangible, man-made objects or services, used to satisfy the wants of the consumer; see goods" |
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| the process (act) of using resources (factors of production) to make goods |
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| the cost of changing resources into finished products (consumer good) |
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Term
| PRODUCTION POSSIBILITIES FRONTIER |
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Definition
| "1. the frontier between possible outputs (given quantity and quality of resources, level of technology and efficiency) and those which are not possible; 2. an economic model depicting all the possible combinations of two goods or services that can be produced with a given quantity of resources" |
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| ability to produce goods and services; the maximum potential output |
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| the ratio of output (goods and services) produced per unit of input (productive resources) over a period of time |
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| the difference between the total revenue and total cost of a business; see loss |
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| 1. the incentive that leads individuals to assume the risk of loss associated with investing one’s own resources in a business in the hope of achieving a greater financial reward than in any other enterprise involving the same degree of risk; 2. the guiding force of a free market system; The desire for profit leads investors to direct their resources to those areas of the economy where consumers place the highest value on the goods and services produced from those resources. |
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| "a tax that increases with the income of the taxpayer; Example: Federal income tax gets higher, both as an amount and as a percentage, as income rises." |
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| 1. something tangible that one owns; 2. land or real estate |
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| taxes paid by households and businesses to local governments on land and buildings |
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| all levels of income are taxed at the same rate; also called flat tax; Example: biblical tithe |
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| a business enterprise owned solely by one person or proprietor |
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Term
| PUBLIC GOODS AND SERVICES |
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| goods and services provided by the government; Examples: highways and highway maintenance |
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| "property (things) owned together by all people for everyone’s use; Examples: certain schools, parks, libraries" |
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| the acquisition of ownership or title to something in exchange for payment |
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| 1. the relative amount of goods and services that can be purchased with the dollar as compared with some earlier period; also called the value of the dollar or the buying power of the dollar; 2. the ability of an individual or group to purchase goods and services as measured by their income or wealth adjusted for changes in the value of the dollar |
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| a market situation in which there is only one seller of a good or service and no close substitutes for that good or service |
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| the degree of excellence (of a product) |
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| "a proportional share or a maximum limit: 1. in international trade, limits put on the quantities of goods in place of protective tariffs to protect domestic producers from foreign competition; Export quotas may be used to deny scarce resources to foreign producers. 2. in labor relations, restrictions placed on the hiring of people with certain racial, religious, physical or other characteristics; 3. in planned or socialist economies, performance goals set by central planners for various subunits of the economy" |
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| What is your favorite color? |
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