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| business cycle | A sequence of economic activity typically characterized by recession, fiscal recovery, growth, and fiscal decline. |
| consumer price index (CPI) | - A measure of the overall price level in the economy. |
| consumer sovereignty | Those with money and other assets are able to use their purchasing power to tell producers of goods and services what to produce (and how much). |
| consumption | The use of resources, goods, and services to satisfy economic wants. |
| debt | Money owed to a person company, or government. |
| demand | The different quantities of a resource, good, or service that will be purchased at various possible prices at a given point in time |
| depression | A period of low economic activity and widespread unemployment. |
| discount (interest) rate | The interest rate the Federal Reserve System charges member banks for overnight loans. Percentage charged on a loan. |
| economic growth | Growth that occurs when increasing amounts of goods and services are produced over the long term. (Measured as GDP (gross domestic product)) |
| economic needs | resources needed |
| economic wants | Human needs and desires than can be satisfied by consuming goods and services (Ex: hunger, thirst, protection from the elements, good health, entertainment, a pleasing physical appearance). |
| expenditure | The act or process of paying out. |
| federal budget | The revenue and appropriations of the government. |
| federal reserve system | The nation's central bank. See Monetary Policy. |
| fiscal policy | A government course of action that seeks to achieve socioeconomic goals by changing the level of taxing and governmental spending in the economy. |
| goods | - Physically tangible objects that can be used to satisfy economic wants (Ex: food, shoes, cars, houses, books, and furniture). |
| gross domestic product (gdp) | The total dollar value of all final goods and services produced within a country's borders in a given time period. |
| inflation | An increase in the overall price level in an economy. |
| interest rates | The interest rate the Federal Reserve System charges member banks for overnight loans. Percentage charged on a loan. |
| monetary policy | Developed by the Federal Reserve System (FED). They use open market operations, adjustments in reserve requirement and changes in the primary credit rate (discount rate) in order to help the economy grow, keep prices stable, and keep employment at a high level |
| natural resources | The renewable and nonrenewable gifts of nature that can be used to produce goods and services (Ex: land, water, animals, minerals, trees, climate, soil, fire, seeds, grain, and fruits). |
| open market operations | The means the Federal Reserve System uses to affect the economy by buying or selling government securities on the open market. |
| opportunity costs | - The foregone benefit of the next best alternative when an economic decision is made. If the class chooses to go to the library to work on their computer skills instead of having recess, then opportunity cost of the choice is having recess. |
| price stability | Zero or very low positive inflation. |
| production | act of creating goods and services by combining economic resources. |
| productivity | - The amount of output that is produced per unit of input; usually expressed in terms of output per unit of time. |
| profit | The difference between the amount of money used to operate a business and the amount of money the business takes in. |
| progressive income tax | Or graduated tax, is a tax that is larger as a percentage of income for those with larger incomes |
| recession | A slowdown in economic activity for at least two consecutive quarters (6 months). |
| recovery (economic) | Increased economic activity during a business cycle, resulting in growth in the gross domestic product. |
| reserve requirements | The required percentage of deposits that banks must hold in cash or deposits at the Federal Reserve. This requirement is set by the FED. |
| revenue | The total income of a business or a unit of government. |
| scarcity | The condition that results from unlimited economic wants and the limited resources, goods, and services available to satisfy those wants. |
| socio economic goals | Broad social goals that relate to economics and guide individuals and society in making decisions. |
| supply | - The different quantities of a resource, good or service that will be offered for sale at various possible prices during a specific time period. |
| tariff | A list of duties or taxes placed by a government on imported or exported goods. |
| tax (income, sales, etc) | Mandatory payment to the government (Ex: income, sales, estate, etc.) |
| tax cuts | A reduction in the amount of money collected annually by the government. |
| trade | To engage in the exchange, purchase or sale of resources, goods or services. |
| trade off | A situation that occurs when choices or decisions involve giving up (trading off) some of one thing to get more of something else. |
| uncontrollables | An obligation in the budget that cannot be controlled, reduced, or dispensed with. (Ex: Interest on national debt) |
