Term
|
Definition
| "producing some quantity of output at least cost, in terms of alternative output sacrificed" |
|
|
Term
|
Definition
| an increase in a nation’s total output of goods and services; usually measured in per capita terms |
|
|
Term
|
Definition
| "excess of revenue over all costs of production, including a normal profit; the return a business makes on invested capital, minus the cost of capital, times the amount of invested capital; see normal profit" |
|
|
Term
|
Definition
| the four questions that every society must answer as it allocates its scarce resources to meet the unlimited wants of its people: WHAT will be produced? (composition of output) HOW will it be produced? (productive methods); FOR WHOM is the output intended? (allocation of final goods and services); HOW MUCH will be produced (How large is the GDP? How large should it be?) ; The first three are microeconomic questions and the last is the macroeconomic question. |
|
|
Term
|
Definition
| payment to a factor of production in excess of the minimum required to keep that factor in the particular line of production |
|
|
Term
|
Definition
| "1. the absence of large changes in economic activity 2. a situation with steady growth of production, employment and standard of living with no change in the price level" |
|
|
Term
|
Definition
| "the way a society organizes the production, consumption and distribution of goods and services" |
|
|
Term
|
Definition
| "not wasteful, particularly of resources such as money" |
|
|
Term
|
Definition
| the study of how people make choices about the best use of scarce resources |
|
|
Term
|
Definition
| making the best possible use of scarce resources; producing the largest output with the least input |
|
|
Term
|
Definition
| demand that is relatively responsive to changes in price; occurs when the percentage change in quantity demanded by buyers is greater than the percentage in change in price |
|
|
Term
|
Definition
| supply that is relatively responsive to changes in price; occurs when the percentage change in quantity that producers are willing to supply is more than the percentage change in price |
|
|
Term
|
Definition
| the degree of consumer responsiveness to changes in price; Demand is elastic when a change in price results in a relatively greater (more than proportional) change in the quantity of a good that people will buy. |
|
|
Term
|
Definition
| the degree of sellers’ responsiveness to changes in prices; Supply is elastic when a change in price results in a relatively greater (more than proportional) change in the quantity offered for sale. |
|
|
Term
|
Definition
| a government prohibition against the shipment of certain products to a particular country for economic or political reasons; a government order imposing a trade barrier |
|
|
Term
|
Definition
| "a sudden, urgent, unexpected occurrence requiring immediate activity (response)" |
|
|
Term
|
Definition
| "something that can produce heat, light and/or motion" |
|
|
Term
|
Definition
| one who organizes and manages resources—including labor—to produce goods and/or services and who assumes the risks of a business for the sake of the possible profit |
|
|
Term
|
Definition
| assuming the risks of owning your own business; one of the factors of production; see factors of production and managerial ability |
|
|
Term
|
Definition
| the price at which the quantity demanded by buyers equals the quantity supplied by sellers; see market clearing price |
|
|
Term
|
Definition
| the basic monetary unit of most members of the European Union (introduced in 1999) |
|
|
Term
|
Definition
| "family of democratic European countries, committed to working together for peace and prosperity; In the early years, much of the co-operation between EU countries was about trade and the economy, but now the EU also deals with many other subjects of direct importance for our everyday life. The historical roots of the European Union lie in the Second World War. May 9 1950 is the ""birthday"" of what is now the EU and is celebrated annually as Europe Day. Initially, the EU consisted of six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Denmark, Ireland and the United Kingdom joined in 1973, Greece in 1981, Spain and Portugal in 1986, Austria, Finland and Sweden in 1995. In 2004 the biggest ever enlargement takes place with 10 new countries joining." |
|
|
Term
|
Definition
| trading a good or service for another good or service or for money; may be accomplished with or without money; see barter and trade |
|
|
Term
|
Definition
| 1. the price of currency of one country in terms of the currency of another country; 2. the rate at which one currency can be exchanged for the currency of another country; The rate of exchange can be used to convert prices from one currency standard to another. |
|
|
Term
|
Definition
| the outlays of cash in a given period; distinguished from costs which include items not involving current cash outlays |
|
|
Term
|
Definition
| costs requiring cash outlays payable to persons outside the firm |
|
|
Term
|
Definition
| selling our country's products to other nations; the item being sold |
|
|
Term
|
Definition
| "benefits accruing to persons outside the market transaction; also called an external economy or spillover benefit; Example: A large tree in your yard shades the sidewalk, a benefit to the entire neighborhood. " |
|
|
Term
|
Definition
| costs imposed on persons who are not involved in the production or use of a good or service; sometimes called a spillover cost or external diseconomy; Example: Air pollution from a factory is a cost imposed on everyone in the vicinity. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| "effects, good or bad, on parties not directly involved in the production or use of a good or service" |
|
|
Term
|
Definition
| "land, labor, capital; also called resources;" |
|
|
Term
|
Definition
| payments made to the owners of the factors of production—wages to labor; rent to owners of land or capital goods; interest to those who have loaned the money to buy capital goods or land; and profit to the owners of the business |
|
|
Term
|
Definition
| "resources used by businesses to produce goods and services; The four are land, labor, capital and entrepreneurship or managerial ability." |
|
|
Term
|
Definition
| Federal Deposit Insurance Corporation – the federal government agency that insures bank depositors' accounts |
|
|
Term
|
Definition
| Federal Insurance Contributions Act—name of the federal law that provides for deductions to be taken from the wages of citizens and invested by the government to pay Social Security benefits |
|
|
Term
| FEDERAL COMMUNICATIONS COMMISSION |
|
Definition
| the federal agency that regulates interstate communications including the right to operate radio and TV stations |
|
|
Term
|
Definition
| the government of a nation; Example: the government of the United States; see government |
|
|
Term
|
Definition
| paper currency; printed and distributed by the Federal Reserve Bank of the United States the value of which is guaranteed by the US government |
|
|
Term
|
Definition
| "a nationwide network of 12 banks, controlled by the Federal Reserve Board (the Fed), which do not deal with the public but implement Federal Reserve policies; They act as depositories for member banks." |
|
|
Term
|
Definition
| Federal Trade Commission—the federal government agency charged with maintaining competition by preventing “unfair competition” or the development of monopolies |
|
|
Term
|
Definition
| a charge to the customer by the bank for a service such as writing a check or using an ATM machine |
|
|
Term
|
Definition
| money with no precious metal backing or special reserve that exists by the authority of a government; a promise to pay by the issuer and does not necessarily have any intrinsic value |
|
|
Term
|
Definition
| goods and services sold to persons who will consume them |
|
|
Term
|
Definition
| the cost of credit; charges connected with credit for example interest costs; also called carrying charge or interest |
|
|
Term
|
Definition
| "a business engaged in borrowing, holding and/or lending money" |
|
|
Term
|
Definition
| the exposure of assets or money belonging to an individual or a business to the possibility of loss by undertaking a business venture |
|
|
Term
|
Definition
|
|
Term
|
Definition
| "refers to the expenditure a government undertakes to provide goods and services and to the way in which the government finances these expenditures; changes in government spending or taxes to stabilize economic conditions; If successful, this brings about stable prices, economic growth and full employment." |
|
|
Term
|
Definition
| "costs that do not change as the output of the firm changes; Examples: rent, interest, insurance; " |
|
|
Term
| FOOD AND DRUG ADMINISTRATION |
|
Definition
| "a division of the Department of Health and Human Services that protects the public against impure and unsafe food, drugs, and cosmetics" |
|
|
Term
|
Definition
| energy received by the body from food; used for motion and heat |
|
|
Term
|
Definition
| giving up a security deposit when the obligations of a lease are not met |
|
|
Term
|
Definition
| "fuels formed underground from once living things—oil, natural gas, coal, etc." |
|
|
Term
|
Definition
| "an economic system characterized by private ownership of property and resources, competition and free markets; a system in which individuals, rather than government, make the decision about the way resources are used, and goods and services produced and used; also called capitalism" |
|
|
Term
|
Definition
| "1. a good for which the market price is zero at a particular time and place; 2. a good for which quantity supplied is greater than quantity demanded at a zero price A good is a free good because it is not scarce, relative to the demand for it. Note: Air is considered a free good. It is important to us, but since there is so much of it we do not have to pay for it. However, if we continue to pollute the air, we may have to pay for scarce clean air." |
|
|
Term
|
Definition
| market where the exchange takes place without control or invention by government; see competitive market |
|
|
Term
|
Definition
| the policy of having no government restrictions on the exchange of goods or services between regions or nations thus letting the law of comparative advantage operate freely |
|
|
Term
|
Definition
| "any of a variety of indirect, non-cash benefits, such as health insurance, pension benefits, work clothes, etc. provided by employers in addition to regular wage or salary compensation; Fringe benefits cost the employer but are not seen by the worker as a part of their money income and are usually not taxable." |
|
|
Term
|
Definition
| a condition where anyone who is willing and able to work at the prevailing wage rate is employed |
|
|
Term
|
Definition
| "the uses of money— 1. a medium of exchange to buy good and services; 2. a measure of value to determine how much a good or service is worth, usually measured in dollars; 3. a store of value—a convenient (liquid) way to store wealth" |
|
|
