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Economics portfolio
study guide
| Term | Definition |
|---|---|
| Inflation | a general increase in prices |
| Internal Revenue Service | Internal Revenue Service |
| microeconomics | The study of the economic behaviors and decision making of small units, such individuals, families, and businesses. |
| conglomerate | business combination merging more than three businesses that are unrelated |
| substitution effect | when consumers react to an increase in a goods price by consuming less and more of another good |
| goods | physical objects such as clothes or shoes |
| market economy | an economic system in which production and prices are determined by unrestricted competition between privately owned businesses. |
| disposable personal income | Disposable Personal Income (DPI) is how much money a person has to spend after taxes and any other mandatory withholdings are taken from their paycheck. |
| a cooperative | a business organization owned and operated by a group of individuals for mutual benefit |
| expenditures | the action of spending funds. |
| financial/capital account | A financial account measures the increases or decreases in international ownership assets |
| human capital | the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. |
| Consumer Price Index CPI | a pric index determined by measuring the price of a standard group of goods meant t represent the typical "market basket" of a typical urban consumer |
| supply | a stock of a resource from which a person or place can be provided with the necessary amount of that resource. |
| Demand | the desire to own something and the ability to pay for it |
| elasticity | the ability of an object or material to resume its normal shape after being stretched or compressed; stretchiness. |
| liability | a person or thing whose presence or behavior is likely to cause embarrassment or put one at a disadvantage. |
| specialization | the concentration of productive efforts of individuals and firms on a limited number of activities |
| exchange | An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. |
| comparative advantage | the ability to produce a product most efficiently given all other products that could be produced |
| theory of rational expectations | In economics, "rational expectations" are model-consistent expectations, in that agents inside |
| demand curve | a graphic representation of a demand schedule |
| Losses and business failures | A business failure is one that closes with a financial loss to a creditor or one that is involved in court action such as receivership or reorganization. |
| the law of comparative advantage | The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage. |
| secondary effect | In effects research, primary effects are those which are immediate or more predictable while secondary effects are those which are subsequent or less predictable. |
| free market economy | The free market is an economic system based on supply and demand with little or no government control. |
| economics | the study of how people seek to satisfy thier needs and wants by making choices |
| scarcity | the state of being scarce or in short supply; shortage. |
| partnership | A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. |
| needs | of necessity |
| conglomerate goods | A conglomerate is one very large corporation. |
| trade-offs | a balance achieved between two desirable but incompatible features; a compromise. |
| market equilibrium | Definition of market equilibrium – A situation where for a particular good supply = demand. |
| marginal utility | In economics, utility is the satisfaction or benefit derived by consuming a product; thus the marginal utility of a good or service is the change in the utility from an increase in the consumption of that good or service. |
| laissez-faire | abstention by governments from interfering in the workings of the free market. |
| fixed costs | business costs, such as rent, that are constant whatever the quantity of goods or services produced. |
| industrial union | industrial union; plural noun: industrial unions |
| central bank | a bank that can lend to other banks in time of need |
| federal budget | During FY2019, the federal government spent $4.45 trillion, up $338 billion or 7.1% vs. FY2018 spending of $4.11 trillion. |
| trust funds | A trust fund allows a person (the grantor) to set aside assets like cash, investments, real estate, and life insurance for the benefit of one or more beneficiaries. |
| municipal goods | Basic city services may include sanitation (both sewer and refuse), water, streets, the public library, schools, food inspection, fire department, police, ambulance, and other health department issues and transportation. |
| modified union shop | A company that has made an agreement with a labor union stating that current employees may choose to join the union or not, but all new employees will be required to become members. |
| Lorenz Curve | A Lorenz curve is a graphical representation of income inequality or wealth inequality developed by American economist Max Lorenz in 1905. |
| commodity money | Commodity money is money whose value comes from a commodity of which it is made. |
| macroeconomics | The study of the behavior and decision making of the entire economies |
| theory of negotiated wages | The theory of negotiated wages states that organized labor's bargaining strength is a factor that helps determines wages. |
| perfect competition | the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers. |
| Branch of the U.S. Treasury Dept. in charge of collecting taxes | The USDT collects all federal taxes through the Internal Revenue Service |
| Which capital markets are the stock market associated with? | Capital markets are composed of primary and secondary markets. |
| What will decreasing personal tax rates do? | With lower income tax rates, they would keep more of their gross income, so effectively they have more money to spend. |
| Why is is equilibrium present in a market? | Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. |
| When will income and living standards of a nation increase? | GDP per capita only measures the income paid to those residing in the country's borders. |
| How does the government fund a project that creates jobs | It can take measures to create private-sector jobs by moving up investments that the public needs anyway |
| Why do banks choose to borrow directly from the Federal Government? | Commercial banks borrow from the Federal Reserve System (FRS) primarily to meet reserve requirements before the end of the business day when their cash on hand is low. |
Created by:
Christopher Boyd
Popular Economics sets