| A | B |
|---|
| bear | sluggish stock market with much selling of securities in hope of later purchase at a lower price |
| bond | an interest bearing certificate issued by a government or corporation |
| bull | stock market with much buying of securities in anticipation of a rise in price |
| capital | a stock of accumulated wealth |
| check | a written order directing a bank or banker to pay money as stated |
| credit | a record of the reduction of debt |
| depression | phase of the business cycle marked by industrial and commercial stagnation - scarity of goods and money, high unemployement |
| discount | the interest at the given rate on the face of a bill or note |
| good | a tangible object provided by a producer for use by a consumer |
| interest | price paid for the privelege of using what is borrowed |
| labor | human effort used in production |
| land | national resources such as coal, water, or oil |
| liquid | assets that can be quickly converted into cash |
| mean | the average - having an intermediate value |
| pool | combination of comepting businesses for control by eliminating competition |
| service | an action performed (for payment) by one person or group for another person or group |
| stock | shares or holdings in a corporation or business |
| tender | the thing offered, especially money offered in payment |
| trust | a combination of businesses done in a legal manner and managed by trustees |
| utility | short for public utility companies such as natural gas or electricity |
| profit | producer's income; money left after all production costs have been paid |
| inflation | a general increase in price levels |
| entrepreneurs | people who assume the risks of founding and managing a new business |
| monetary policy | the Federal Reserve's plan of the amount of money in the country's economy |
| fiscal policy | use of government spending and taxing power to achieve macroeconomic objectives |
| taxation | mandatory payments to governments |
| markets | place where buyers and sellers meet |
| opportunity cost | the value of the best alternative you must pass up |
| comparative advantage | Ability of a nation to produce a particular cost or with higher productivity than another nation |
| specialization | This occurs when individual workers focus on a single tasks, enabling each one to be more efficient and productive |
| capitalism | economic system uses the invisible hand to determine what goods and services should be produced |
| A system of exchange in which products are traded directly for other products. | barter |
| the middle class, including merchants, industrialists, and professional people | bourgeoisie |
| to refuse to buy items from a particular country; to refuse to use in order to show disapproval or force acceptance of one's terms | boycott |
| A theoretical economic system characterized by the collective ownership of property and by the organization of labor for the common advantage of all members is called | communism |
| a group (often political) that favors traditional views and values; tends to oppose change | conservative |
| Favoring proposals for reform, open to new ideas for progress, and tolerant of the ideas and behavior of others; broad-minded | liberal |
| a sole supplier of a product with no close substitutes | monopoly |
| the process in transition economies of converting state-owned enterprises to private enterprises(companies) | privatize |
| a decline in the total economic production lasting at least two consecutive quarters, or at lease six months; | recession |
| only enough food to feed ones family is produced; practice of growing just enough for personal use; not for sale | subsistence |
| tax on imports | tariff |
| Financial or other aid provided, especially by the government, to people in need; Health, happiness, and good fortune; well-being | welfare |
| oligopoly | a market structure with a small number of firms whose behaviors is interdependent |
| cartel | a group of firms that agree to coordinate and price decisions to maximize group profits by behaving as monopolies |
| perfect competition | many buyes and sellers so that no individual buyer or seller can influence the price |
| demand | how much of a product consumers are both willing and able to buy at each possible price during a given period |
| GDP | total dollar value of all final goods and sesrvices produced in a nation in a single year |
| CPI | statistical measure of the average prices of a specified set of goods and services purchased by typical consumers in city areas |
| corporation | type of business organization owend by many people but treated by law a though it were a person |
| laissez-faire | economic system in which the government minimizes its interference with the economy |
| microeconomics | branch of economic theory that deals with behavior and decision making by small units such as individuals and firms |
| macroeconomics | branch of economic theory dealing with the economy as a whole and decision making by large units such as governments |
| real GDP | total dollar value of all final goods and serives produced in a nation in a single year that has been adjusted for inflation |
| stagflation | combination of inflation and stagnation (low economic activity) |
| WTO | world's largest trade agreement currently with more than 140 countries |
| mutual fund | investment company that pools the funds of many individuals to buy stocks, bonds, or other investments |
| factors of production | land, labor capital and entrepreneurship used to produce goods and services |
