| A | B |
|---|
| Authoritarian Socialism | gov owns or controls nearly all factors of production |
| Barter | the direct exchange of goods and services without the use of money |
| Capitalism | market based; individuals own and control the factors of production |
| Capital resource | an item that is used inthe production of other goods/services |
| Command Economy | a central gov authority makes all the basic economic decisions and controls the factors of production |
| Communism | the gov owns and controls all factors of production; authoritarian socialism |
| Competition | a state of rivalry among sellers of the same or similar product |
| Consumer Goods | a finished product that is consumed by an individual |
| Democratic Socialism | some means of producing and distributing goods are owned or controlled by an elected gov |
| Division Of Labor | the division of a complex procedure into small tasks |
| Economics | the study of how society chooses to use scarce resources to satisfy its unlimited wants and needs |
| Efficiency | the production og goods and services using the smallest amount of resources for the greatest amount of output |
| Entrepreneur | someone who undertakes and develops a new business enterprise or develops a new product risking failure or the loss for the possibility of financial gain |
| Factor Of Production | a resource used to produce goods and services |
| Free Enterprise | sywtem in which private business operates with minimal gov involvement |
| Incentive | something that encourages an action or effort |
| Income | money payments that households receive from business firms and the gov in exchange for resources |
| Macroeconomics | the study of an entire economy or one of its prinipal sectors |
| Market economics | the gov has little say in what, how, and for whom goods are produced and in which individuals own the factors of production |
| mixed economies | combines elements of traditional, market, and command economic models |
| money | any item, typically currency, which is commonly accepted in exchange for goods, services, or the settling of debts |
| opportunity cost | the value lost by rejecting one use of resources in favor of another |
| private property | property that is owned by individuals and businesses rather than the gov |
| production possibilities curve | a graphic representation showing all of the possible combos of two goods or services that can be produced in a stated period |
| purposes of money | a standardized item that is generally traded for goods or services |
| scarcity | the fundamental condition of economics that results from the combo of limited resources and unlimited wants |
| standard of living | peoples economic well being as determined by the quantity of goods and services they consume in a given time period |
| technology | scientific and technical techniques used to produce existing products more efficiently or of higher quality |
| traditional economy | production is based on customs and traditions |
| utility | the usefullness of a goods or service that contributes to its value |
| black market | buying and selling of goods in violation of the law |
| demand | the amount of a good or service that consumers are willing and able to buy at variousprices during a given time period |
| demand and supply curve shifts left | a decrease in supply or demand curves |
| demand and supply curve shifts right | an increase in supply or demand curves |
| depreciation | a decrease in the value of a capital good because of its age, use, or deterioration |
| elastic demand | when quantity demanded changes greatly in response to a change in price |
| elastic supply | when quantity supplied changes greatly in response to a change in price |
| fixed costs | a cost of doin business that remains constant as production increases or decreases |
| income effect | the effect that a change in an items price has on consumers ability to purchase goods |
| inelastic demand | when quantity demanded changes slightly in response to a change in price |
| inelastic supply | when quantity supplied changes slightly in response to a change in price |
| marginal product | the additional output obtains by employing one more unit of input |
| market equilibrium | the point at which the quantity supplied and quantity demanded for a product is at the same price |
| minimum wage | the lowest hourly wage rate that an employer can legally pay a wroker, as established by federal law |
| negative externality | when someone who does not make or consume a certain product nonetheless bears part of the cost of its production |
| oligopoly | a market in which a few large sellers control most of the production of a good or service |
| overhead | the sum of a business's fixed costs except for wages and the material costs |
| positive externality | when someone does not sell or buy a certain product nonetheless benefits from its production |
| price | the way in which producers tell consumers how much it costs to produce and distribute a good or service |
| price ceiling | a gov regulation that sets a maximum price for a particular good |
| price discrimination | the setting of different prices for different buyers under the same circumstances |
| price floor | a gov regulation that sets a minimum price for a particular product |
| profit | the difference between the revenue received from the sale of a good or service and the costs of providing that good or service |
| public good | any good or service that is consumed by all members of a group, regardless of who has helped pay for it |
| rationing | a system by which a gov or other institution decides how to distribute a good or service |
| sherman antitrust act | prohibits any agreements, contracts, or conspiracies that would restrain interstate trade or cause monopolies to form |
| substitute good | a product that purchasers use in place of another product, particularly if the price of the other product rises |
| tax | a required payment to a local, state, or national gov, usually made on some regular basis |
| utility | the usefullness of a good or service that contributes to its value |
| variable cost | a cost of doing business that changes directly with a change in the level of output, typically rising and dropping as production increases and decreases |
| affirmative action | a program requiring US employers, labor unions, and other institutions to eliminate discriminationn against women and minorities |
| asset | a person's property |
| bankruptcy | a legal process in which an individual or business whose debts exceed the value of their assets in forgiven those debts in excess of their assets |
| bear market | a financial market in which in the price of stocks, bonds, or other traded commodities is generally on the decline and in which investors believe that prices will continue to fall |
| civil rights act of 1964 | protects workers from employer discrimination based on race, sex, religion, or natural origin |
| closed shop | a business that hires only labor union workers |
| collateral | property pledged by a borrower as security for a loan |
| common stock | a share of ownership in a corporation |
| conglomerate | a corporation made up of several companies involved in different industries and markets |
| cooperative | a business that is owned collectively by those who use its goods or services |
| corporate bond | a document representing a loan made by an investor to a corporation |
| corporate charter | a document that a gov issues to grant certain rights and imposes certain restrictions on a bank or corporation |
| craft union | a labor union composed of one trades skilled workers |
| diversification | the practice of spreading savings among several types of investments, such as gold, real estate, time deposits, or a variety of different stocks and bonds |
| general partnership | all members have equal authority and share equally in the business's profits and losses |
| horizontal combination | a corp made up of various businesses that produce the same or similar goods and services |
| industrialization | the process of mechanizing all major forms of production |
| interest | the financial gained by investing or leding capital |
| intrinsic rewards | nonmonetary compensation that has no financial woth but is desirable because of the recipients personal values |
| John L. Lewis | pres of the UMW that formed the Committee for Industrial Organizations within the AFL in 1935 in order to widen the AFL's membership |
| labor union | an org of workers that negotiates with employers for better wgaes, improved working conditions, and job security |
| liability | a debt obligation |
| maturity | the length of time that money must be deposited in a time deposit |
| NLRB | enforced the right to organize and join a union |
| preferred stock | a share of ownership in a corp |
| Samuel Gompers | the first AFL president who felt that unions should focus their efforts on gaining higher wgaes and better working conditions rather than striving for social changes such as the cooperatives supported by the Knights |
| secondary boycott | a refusal to buy the goods or services of any firm that does business with a company whose employees is on strike |
| share | the smallest unit of ownership in a corp, usually expressed as one share of stock |
| vertical combination | a corp made up of various businesses involved in different stages of the production process of the same good or service |
| women in the labor force | industrialization also increased the number of females who recieved wages for their labor. The number rose again during WWII when many women took the jobs of the men who were fighting in the war |
