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Requiring strictobedience to an authority Authoritarian
Barrier to entry any factor that makes it difficult for anew firm to enter a market
Barter the direct exchange of one set of goods are sold illegally
Blue collar worker someone who works in an industrial job and who receives wages
Bond a formal contract to repay borrowed money with interst at fixed cost
Capital gain the difference between a higher selling price and a lower purchase price
Ceteris parivus latin phrase meaning "all other things being constant"
Check clearing process by whichbanks record whose account gives up money and whose account receives money when a customer writes a check
collective large farm leased fromthe stateto groups of peasant farmers
commodity product that is the same no matter who produces it
communism a poltical system charterized by a centurally plannedeconomy
complements 2 goods that are bought and used together
Conglomerate business combination merging more than 3 businesses that make unrelated products
Consumer sovereignty the pwer of consumers to decide what gets produced
Continuum a range with no clear divisions
Corprate bond corporatin that issues to raise money in order to expand its business
Corporation a legal entity owned by indiviual stockholders
cost alternative that is given up as the result of a decision
Coupon rate the interest rate that a bond issuer will pay to a bondholder
Creditor person or institution to whom money is owned
Currency coins and paper bills used as money
Demand desire to own something and the ability to pay for it
Demand curve graphic representation of a demand schedule
Demand schedule table that lists the quantity of a good person will buy at each different price
Discount rate the Federal Reserve charges for loans to commerical banks
Divdend the portion of a corporate profits paid out to stockholders
DOW index that shows how certain stocks have traded
Economic systems used by a society to produce and disreibute goods and service services
Economics study of how people seek to satisfy their needs and wants by making choices
Efficiency using resources in such a way as to maximize the production of goods and services
Elastic describes demand that is very sensitive to change in price
Elasticity if demand measure of how consumer react to a change in price
Excess demand when quantity demanded is more than quantity supplied
Excess supply when quantity supplied is more than quantity demanded
Excise tax the production or sale of a good
FDIC gov't agency that insures customer deposits if a bank fails
Federal fund rate interst rate banks charge each other for loans
Public interst the concerns of the public as a whole
Rationing sytem if allocating scarce goods and services using critereia other than price
Return money an investor receives above and beyind the sum of money initially invetsed
Royalty share of earnings given as payment
Share portion of stock
Principal the amount of money borrowed
Portfolio collection of financial assets
Net worth total assets minus total liabilites
NASDAQ Americian market for OTC securities
Technology the process used to produce a good or service
total revenue the total amount of money a firm recevies by selling goods or services
Supply the amount of goods available
Supply shock a sudden shrotage of a good
Created by: fperkins2011
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