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Unit 3
Unit 3 Exam Principles in Economics
27
Economics
12th Grade
01/04/2011

Additional Economics Flashcards

 


 

Cards

Term
The FED's 3 Main tools
Definition
Open Market Operations
Reserve Requirements
Discount Rates
Term
Open Market Operations
Definition
Buying securities to boost bank reserves
Term
Reserve requirements
Definition
Banks must save __% of money
Term
Discount Rates
Definition
interest rate for banks to make short term loans
Term
FED 2 Main goals
Definition
Growth and stability
Term
GDP Equation
Definition
C+I+G + (X-M)
Consumption + Investments + Government spending (Exports - Imports)
Term
Share
Definition
Part ownership in a company
Term
New York Stock Exchange (NYSE) NASDAQ
Definition
where stocks are traded
Term
Stock Index
Definition
collection of different company stocks to track overall market performance
Term
dividend
Definition
payment to shareholder as a portion of a profit
Term
income stock
Definition
stock from a comp that pays dividends rather than reinvesting (usually slow-growing stocks)
Term
Growth stock
Definition
company reinvesting profits into the company and not paying dividends; profits made when stocks are sold
Term
Split
Definition
dividing a share into multiple shares, when a company succeeds
Term
Mutual fund
Definition
resources are pooled into a mix of stock
Less risk
Term
IPO
Definition
Initial public offering
First value of stock
Term
GDP
Definition
market value of all final goods and services per year per country
Term
Final goods/services
Definition
produced for final use, not resale
Term
Inflation
Definition
percent of change in value
Term
CPI
Definition
Consumer price index to track inflation
"basket" sample of goods/ services
Term
Causes of Inflation
Definition
Wage/price spiral
Rising input costs
Demand pull
Monetary growth
Term
Inflation helps ____ and hurts ____
Definition
Helps borrowers and hurts lenders and people with fixed incomes
Term
Equilibrium
Definition
Place where the price and quantity demanded intersect
Term
GDP doesn't cover
Definition
underground activities, nonmarket activities, negative externalities, life quality
Term
GNP
Definition
Anual income
Term
Real GDP
Definition
adjusted for inflation
Term
Changes in supply
Definition
Expectations
Number of sellers
Government regulations
Input costs
Productivity
Technology
Term
Changes in demand
Definition
tastes and preferences
expectations
substitutes
compliments
number of consumers
incomes
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