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monikaH@ch18-22
unit 6 vocab
| Term | Definition |
|---|---|
| Economics | The study of how we make decisions based on limited resources. |
| Microeconomics | Individual (Personal/business) economic decisions. |
| Macroeconomics | Economy as a whole and decisions by governments and whole industries. |
| Economic System | System of producing the things its people want and need. |
| Resource | Things used in making good and providing services. |
| Scarcity | Occurs when there are not enough resources to produce all goods. |
| Trade-off | Deciding to do or get one thing rather than another. |
| Opportunity Cost | The cost of the next best use of your time/money when you chose one thing over another. |
| Marginal Cost | Additional cost of producing one additional unit of output. |
| Marginal Benefit | Additional satisfaction/benefit received from one more unit. |
| Cost-Benefit Analysis | Rational thinking that makes you chose one thing over another due to greater benefits. |
| Services | Work performed for someone else. |
| Factors of Production | Resources necessary to produce goods and services. |
| Capital | Manufactured goods used to make other goods and services. |
| Entrepreneur | Individual who starts a new business, product or improves a process. |
| Gross Domestic Product (GDP) | Total value of all final goods and services produced by a country in one year. |
| Standard of living | The quality of life based on the possession of necessities and luxuries that make life easier. |
| Market | The willing exchange of goods and services between buyers and sellers. |
| Factor Market | Markets where productive resources are bought and sold. |
| Product Market | Markets where producers offer goods and services for sale. |
| Productivity | Efficient use of resources is measured by the amount of output produced by a given level of inputs in a specific amount of time. |
| Specialization | People, Businesses, religions concentrate on goods or services that they can produce better than anyone else. |
| Economic Interdependence | Relying on others and others rely on us to provide goods and services. |
| Capitalism | Economic system which private citizens own and use the factors of production in order to seek a profit. |
| Free Enterprise | Economy an competition is allowed to flourish with minimum government interference. |
| Consumer Sovereignty | Consumer is the "king" and determines what products will be produced. |
| Private Property Rights | Rights that we have to own, use, dispose, or throw away our own property as we hose as long it doesn't interfere with others rights. |
| Profit Motive | Driving force that encourages individuals and organizations to improve their material well-being. |
| Voluntary Exchange | Buyers/Sellers freely and willingly engage in market transactions. |
| Laissez-Faire Economics | A saying meaning that the government should not interfere with the marketplace. |
| Disposable Income | Money that remains after all taxes have been paid. |
| Discretionary Income | The money remaining after paying for necessities. |
| Consumerism | A movement to educate buyers about the purchases they make and demand to better and safer products from manufacturers. |
| Comparison Shopping | To look at both brand-names or stores to find the cheaper price. |
| Warranty | A promise from the manufacturer r a seller to repair or replace a faulty product within a certain time period. |
| Credit | Borrowing money to pay for something now while promising to repay later. |
| Annual Percentage rate | The annual cost of credit expressed as a percentage of the amount borrowed |
| Collateral | Property used as security for a loan. |
| Bankruptcy | The inability to pay back debts. |
| Interest | The payment people receive when they lend money. |
| Principal | The amount you initially deposited. |
| Return | Profit earned by investments. |
| Stock | Buying partial ownership in a company. |
| Dividend | Substantially increase the profit of owning stocks. |
| Bond | Lending money to a company/Government. |
| Mutual Fund | Pools of money from many people. |
| Evaluate | Review your spending. |
| Demand | Desire and willingness to buy a good/service |
| Law of Demand | Quantity demanded and the price move in opposite directions. |
| Market Demand | The total demand of all consumers for their product or service. |
| Utility | The pleasure or usefulness we get from products. |
| Marginal Utility | The additional satisfaction from each additional product. |
| Substitute | Competing products |
| Complement | Products used together. |
| Demand Elasticity | The extent to which a change in price causes a change in the quantity demanded. |
| Supply | The various quantity of a good or service producers are willing to sell. |
| Law of Supply | Suppliers will offer more for sale at higher prices and less at lower prices. |
| Profit | The money received for products above and over its cost. |
| Market Supply | The total off all goods and services in a market. |
| Subsidy | A government payment to a company or person due to their actions. |
| Supply Elasticity | Measure of how the quantity supplied of a good or service changes in response to changes in price. |
| Equilibrium Price | A point where the price gives no shortage and no surplus of a product. |
| Price Ceiling | Maximum price set by the government that can be charged for an item. |
| Price Floor | The minimum price that can be charged for a good. |
| Sole proprietorship | A business owned by a single person. |
| Financial Capital | Money needed to run a business or enable it to grow. |
| Articles of Partnership | Article that identifies how much money each of you will contribute and what role each partner will play in the business. |
| Corporation | An organization business recognized by law that has many rights and responsibilities. |
| Charter | A government document that grants permission to organize. |
| Stock | Ownership shares f a corporation. |
| Stockholder | A person who is part owner of corporation because of owning stock with the company. |
| Board of Directors | Managers that run the corporation on a daily basis. |
| Cooperatives | Voluntary association of people formed to carry on an economic activity that benefits the members. |
| Labor Union | Group of workers who band together to have a better chance to obtain higher pay and better work conditions. |
| Right-to-work Law | Prevents mandatory union membership required by the union shop. |
| Collective bargaining | The company meets to discuss the workers' new contract and negotiate wages and benefits. |
| Mediation | Bringing in a third party who tries to help a company reach a compromise agreement. |
| Arbitration | A third party listens to both cases and choose how a company should settle a disagreement. |
| Transparency | Revealing and making information public. |
| Social responsibility | The obligation to pursue goals that benefit society. |
Created by:
mhartley
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