| A | B |
|---|
| Absolute Advantage | when a country can produce a good at a lower cost using the same or reduced amount of resources. |
| Appreciation | an increase in the value of an asset. |
| Appropriations | Money set aside in a budget for specific purposes. |
| Antitrust Legislation | laws that forbid anti-competitive behavior and promote competition. |
| Balance of Trade | the relationship between the value of a country’s exports and the value of its imports. |
| Bonds | type of investment in which you lend or load money to a company |
| Budget | a tool for managing money to achieve short and long term goals; a budget includes a list of all types of income and expenses over the course of a time period |
| Budget Deficit | occurs when more money is spent that is received. A budget surplus occurs when more money comes in than is spent. |
| Budget Surplus | a situation when income exceeds expenditures. |
| Business Cycle | movement |
| Capital Goods | machines and tools used in production of other goods. |
| Capital Productivity | the tools and supplies used to produce a product. |
| Cartel | a group of competitive firms that collude and work together to control pries in and industry. |
| Charter | the legal authorization to conduct business in a particular state. |
| Circular Flow of Economic Activity | a model that shows the relationship between households and businesses in a free market economy. |
| Collusion | occurs when competing firms in an industry work together to control prices and increase profits. |
| Command Economy | economic system where economic decisions are made solely by the government. |
| Comparative Advantage | when a country can produce a good with a lower opportunity cost than another country. |
| Competition | a rivalry between two or more businesses trying to sell products to the same customer or market. |
| Consumer Price Index | a measurement used by economics to measures average prices of a market basket of consumer goods and services. |
| Consumer Product Safety Commission | a governmental agency responsible for setting and monitoring safety standards for all consumer products. |
| Consumer Sovereignty | a characteristic of a market economy that gives consumers the power to decide what businesses produce. |
| Consumer Surplus | when you can buy things for less than what you were actually willing to pay. |
| Contracts | an agreement between two or more parties that is enforceable in court. |
| Cooperative | a group of people who pool their resources in order to buy and sell more efficiently than they could independently. |
| Corporation | a legal entity with an existence that is separate from the people who create |
| Cyclical Unemployment | unemployment that is caused by a recession or downturn in business activity; caused by a decrease in total spending. |
