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Economic Terms 41-60
| Question | Answer |
|---|---|
| STOCK | PIECES OF OWNERSHIP OF A FIRM |
| STOCKHOLDERS(SHAREHOLDERS) | PEOPLE WHO BUY STOCK |
| DIVIDEND | CHECK PAID TO THE STOCKHOLDERS WHEN THE COMPANY MAKES A PROFIT |
| MERGER | 2 OR MORE BUSINESSES JOIN TO FORM A SINGLE FIRM |
| HORIZONTAL MERGER | INVOLVES BUSINESSES THAT MAKE THE SAME PRODUCT OR PROVIDE THE SAME SERVICE |
| VERTICAL MERGER | FIRMS THAT DO DIFFERENT STEPS IN A PRODUCTION PROCESS MERGE |
| CONGLOMERATE | A FIRM THAT HAS AT LEAST 4 BUSINESSES , EACH MAKING UNRELATED PRODUCTS |
| NONPROFIT ORGANIZATION | A BUSINESS THAT DOES NOT SEEK FINANCIAL GAIN FOR IT'S MEMBERS |
| LABOR UNION | AN ORGANIZATION FORMED TO WORK FOR IT’S MEMBERS INTEREST IN VARIOUS EMPLOYMENT MATTERS |
| COLLECTIVE BARGAINING | NEGOTIATIONS BETWEEN LABOR AND MANAGEMENT |
| BOND | A FORMAL CONTRACT TO REPAY BORROWED MONEY AND INTEREST AT REGULAR FUTURE INTERVALS |
| DIMINISHING MARGINAL UTILITY | THE MORE UNITS OF SOMETHING THAT A PERSON AQUIRES, THE LESS EAGER THAT PERSON IS TO BUY MORE |
| DEMAND ELASTICITY | THE EXTENT TO WHICH A CHANGE IN PRICE AFFECTS DEMAND |
| INELASTICITY | PRICE HAS VERY LITTLE AFFECT ON DEMAND |
| LAW OF DEMAND | PEOPLE WILL BE WILLING AND ABLE TO BUY MORE OF A PRODUCT AT A LOWER PRICE |
| LAW OF SUPPLY | SELLERS WILL BE WIILING TO SUPPLY MORE GOODS FOR SALE WHEN THEIR PRICE GORES UP |
| LAW OF DIMINISHING RETURNS | THE POINT WHERE OUTPUT IS STILL RISING, BUT AT A DIMINISHING RATE |
| PRODUCTIVITY | USUALLY REFERS TO LABOR, HOW MUCH A PERSON CAN PRODUCE IN A CERTAIN AMOUNT OF TIME |
| FIXED COST | COST THAT A BUSINESS INCURS EVEN IF THEY PRODUCE NO PRODUCT |
| VARIBLE COST | A COST THAT CHANGES WHEN THE RATE OF OUTPUT CHANGES |