| A | B |
|---|
| Depreciation | decrease in value. |
| Dividends | distribution of the after-tax earnings that are distributed to company’s shareholders. |
| Economies of Scale | occurs when the average cost of production decreases as the producer grows |
| Embargo | a law that cuts off most or all trade with a specific country |
| Eminent Domain | the right of the government to take private property for public use and compensate the property owner. |
| Environmental Protection Agency | a governmental agency responsible for enforcing laws about pollution and hazardous materials in order to protect the environment. |
| Exchange Rate | the amount of currency it takes to buy one unit of currency in another country. |
| Exports | goods and services created in one nation and sold to another nation |
| Factor Market | resources that businesses use to produce their products related to the factors of production: land, labor, capital, and entrepreneurship. |
| Federal Communications Commission | governmental agency responsible for the regulating communications industry. |
| Federal Reserve System | the central bank and monetary authority in the U.S |
| Federal Trade Commission | a governmental agency responsible for maintaining competition and informing consumers in our free market system. |
| Fiscal Policy | a method of taxing and spending used by the government in order to influence the economy. |
| Fiscal Year | a twelve-month period used for financial purposes that doesn’t necessarily begin on January first. |
| Fixed Costs | anticipated expenses that are the same each month and usually require payment around the same time each month; examples include house payments, rent, and car payments |
| Food and Drug Administration | a governmental agency responsible for the safety of our foods, cosmetics, and medicines. |
| Foreign Exchange Market | a market in which currencies of different countries are bought and sold |
| Franchise | a type of business organization that is part of a larger parent company; the franchise is independently owned and operated but with rules and regulations mandated by the parent company. |
| Frictional Unemployment | unemployment resulting from workers who are entering the workforce, or who have quit a job and are looking for a new job that better matches their skills. |
| General Agreement on Tariffs and Trade | agreement that set up rules and policies for international trade among the 150 member nations at the end of World War II. Replaced by the World Trade Organization. |
| General Partner | a type of owner in a partnership who is responsible for the day-to-day operations and who has limited liability for any debts of the business. |
| Globalization | the increasing interconnection of producers, consumers, and financial systems around the world. |
| Government Regulation | the act of controlling business behavior through a set of rules or laws |
| Gross Domestic Product | monetary value of final goods and services produced within a country for a specific time period (normally one year) |
| Households | consumers as individuals or in groups living under one roof. |
| Human Capital | the knowledge and skills a person possesses |
| Imports | goods and services brought into a nation from another nation |
