| A | B |
|---|
| diminishing marginal utility | DECREASING satisfaction of USEFULNESS as additional units of of a product are aquired |
| price ceiling | MAXIMUM LEGAL Price that can be charged for a product |
| price floor | LOWEST LEGAL Price that can be charged for a product |
| production function | graphic portrayal showing how CHANGE in the AMOUNT of a single VARIABLE INPUT affects TOTAL OUTPUT |
| public disclosure | REQUIREMENT forcing a business to REVEAL information about it's products or operation to the PUBLIC |
| Laissez-faire | philosophy that GOV'T should NOT INTERFERE with Business activity |
| central bank | BANK that lends to OTHER BANKS, a BANKER'S bank |
| federal budget | ANNUAL plan outlining proposed EXPENDITURES and anticipated REVENUES |
| trust funds | special account used to HOLD revenues designated for a SPECIFIC expediture, Social Security, Medicare, highways |
| equilibrium price | PRICE where QUANTITY SUPPLIED equals QUANTITY DEMANDED |
| demand | combination of DESIRE, ability and WILLINGNESS to BUY a product |
| Fiat money | money by GOV'T DECREE, no alternative value |
| factors of production | PRODUCTIVE RESOURCES - land, capital, labor and entrepreneurship |
| good | TANGIBLE economic PRODUCT, that is useful, relatively scarce, transferable to others and satisfies wants and needs |
| service | WORK or LABOR performed for someone |
| cooperatives | NON PROFIT - performing some kind of economic activity for the BENEFIT of it's members |
| Trade--offs | ALTERNATIVES that must be given up when one is CHOSEN rather than the other |
| economic system | ORGANIZED way society provides of the WANTS AND NEEDS of its people |
| voluntary exchange | BUYERS AND SELLERS FREELY AND WILLINGLY engaging in market TRANSACTIONS |
| fixed income | INCOME that does NOT INCREASE even though prices go up |
