| A | B |
|---|
| food stamps | gov't issued COUPONS that can be exchanged for FOOD |
| fiscal policy | use of gov't spending and revenue collection measeure to influence the economy |
| prime rate | best or LOWEST INTEREST RATE commercial banks charge |
| balance of payments | DIFFERENCE between money PAID TO and RECEIVED FROM other NATIONS IN TRADE |
| GDP Gross Domestic Product | dollar value of all final goods services and structures PRODUCED within a country's borders in one year |
| reserve requirement | FORMULA used to compute the AMOUNT a DEPOSITORY institution's REQUIRED RESERVES |
| default | NOT REPAYING money borrowed |
| GNP Gross National Product | largets measure of a NATIONS INCOME - dollar value of all final goods and services with labor and property supplied by a country's residents |
| exports | the goods and services that a nation produces and sells to OTHER NATIONS |
| aggregate supply | total value of GOODS AND SERVICES that all firms would PRODUCE in a specific period of time at VARIOUS PRICE LEVELS |
| population pyramid | diagram showing break down of POPULATION by age and |
| command economy | economic system - CENTRAL AUTHORITY makes most of major economic decisions |
| equities | STOCKS that represent OWNERSHIP SHARES in the company |
| VAT - value added tax | TAX on the VALUE ADDED at every stage of production |
| Elasticity | measure of RESPONSIVENESS tells us how a DEPENDENT variable like quanity RESPONDS to an INDEPENDENT variable like price |
| marginal cost | EXTRA COST of producing one additional unit of production |
| scarcity | economic problem results from combination of SCARCE RESORCES and people's unlimited WANTS |
| inflation | RISE in the general level of PRICES |
| needs | basic REQUIREMENT for SURVIVAL, food, clothing, shelter |
| wants | way of expressing a need |
