| A | B |
|---|
| arbitration | settling a dispute between labor and management by agreeing to accept the decision of a third party |
| blue-collar workers | craft |
| central gov't planning | The free enterprise economy would not thrive on the this due to lack of choice that is allowed |
| civilian labor force | men and women 16 years old and over who are either working or actively looking for a job |
| Collective Bargaining | negotiation between an labor and management |
| competition | An important characteristic of free enterprise that encourages a better product at a better price |
| compounding interest | interest is earned on both the principal- the amount you deposited-and on any previously earned interest |
| conglomerate | corporation merging more than three unrelated businesses |
| debit card | bank credit procedures used to make cashless purchases |
| decreases | As taxes on an item increases |
| depression | Acute shortages |
| deregulation | reduction of government control on business |
| developed nations | nations with relatively high standards of living and economies based on industry |
| developing nations | nations with little industrial development and relatively low standards of living |
| Economics is best defined as | a study of efforts to satisfy seemingly unlimited wants with scarce resources. |
| elastic demand | A situation in which consumer demand is sensitive to changes in price |
| expansion | After passing through a trough |
| factor markets | Factors of production are bought & sold in |
| factors of production | ÓLand |
| Federal Reserve (Fed) | The central bank of the U.S. which helps determine monetary |
| fiat money | Money by government decree is known as |
| FICA | name given on the paycheck stub for Social Security and Medicare taxes. |
| Financial Plans | need to be reviewed and revised often. |
| foreign aid | Ómoney |
| foreign exchange | buying and selling of foreign currencies |
| free market structure promotes | adequate competition in all markets |
| global integration | Óinterdependency among the countries of the world |
| Gross Domestic Product (GDP) | Ódollar value of all final goods |
| Individual income tax | Single most important source of revenue for the national government |
| inelastic | Modest price increase for an item with little effect on demand indicates that demand for the product is this |
| inverse relationship | a relationship in which one variable decreases when another variable increases |
| labor union | Óassociation of workers that tries to improve working conditions |
| legal tender | money that by law must be accepted for payment of public and private debts |
| maximize profits | The primary purpose of financial planning is to do this |
| merger | Combination of two or more companies into a single firm |
| microeconomics | The study of the economic behavior of individuals & firms |
| Modified free enterprise | Today the American economy is an example of |
| monetary policy | decision making that involves changing the rate of growth of the money supply in circulation in order to affect the cost and availability of credit |
| monopoly | a market in which there are many buyers but only one single seller/supplier |
| multinational corporation (or mulitnationals) | a large business that operates in many countries |
| NAFTA | Óreduced tariffs among United States |
| engaged in trade | Absolute and comparative advantage are terms related to nations that are |
| Net Pay | Amount left in employee paycheck AFTER payroll taxes and other deductions are subtracted |
| opportunity cost | the cost of the next best use of time and money when choosing to do one thing or another |
| outsourcing | the relocation of jobs once done in the United States to foreign countries to reduce costs |
| overdraft checking | checking account that allows a customer to write a check for more money than exists in his or her account |
| payroll taxes | Taxes levied on employers and employees to pay for Social Security & Medicare |
| perfect competition | Market situation in which there are numerous buyers and sellers |
| personal income tax | ÓA tax levied on the taxable income of individuals |
| progressive tax | a tax that takes a larger percentage of higher incomes and lower percentage of lower incomes |
| protect domestic industry | Trade barriers are enacted to |
| Protectionists | people who argue for trade restrictions to protect domestic industries |
| regressive tax | A tax whereby people with lower incomes pay a higher fraction of their income than people with higher incomes. |
| scarcity | Limited quantities of resources to meet unlimited wants which is the basic problem o economics |
| service workers | people who provide services directly to individuals |
| start new businesses | Entrepreneurs are considered the driving force in an economy because they |
| substitute effect | Consumers' willingness to replace a costly item wt one that is less costly is the |
| surplus | quantity supplied is greater than quantity demanded |
| unlimited wants with limited resources | Economics tries to solve the fundamental problem of how to satisfy |
| unskilled labor | Laborers who lack training and skills |
| white-collar workers | Ócategory of workers employed in offices |
| World Trade Organization | World's largest trade organization |
