| A | B |
|---|
| Advertising | statements paid for by a producer or seller that induce consummers to buy his or her products |
| alternatives | different options or choices one has |
| balanced budget | when the total income for a budget is the same as the total outgo |
| barter | trading one thing for another without the use of money |
| borrower | a person who goes to a bank or lending company to get money which will be used to purshase an item |
| capital | money and goods needed to develop, expand or purchase a buisness |
| check | a written order to a bank to pay someone a sum of money may be accepted as a substitute for money |
| collateral | item of value that are pledge to lender to gaurantee the repayment of a loan. If the loan is not repaid, the collateral of the borrower is forfeited to the institution or the individual making the loan |
| command economic system | the what, how, and for whom goods and services will be produced is decided by the goverment |
| consumer | one who uses good and sevices produced by himself or others |
| contract | any agreement between or among persons dealing with what is to happen or be done at some time in the future |
| corporation | a buisness organization in which several people control an corporation that may or may not be publicly owned |
| cost of living | the cost of maintaning a given standard of living in terms of purchased goods and sevices |
| criteria | different reasons we use in decidingthat a certain atlernative is best for use in particular situation |
| currency | paper money printed issused and backed by the goverment |
| deficticit spending | spending by the goverment of more than it takes infrom taxes |
| deflation | a drop in prices that occures when the demand is good and less than the suppy |
| demand | a desire to own or use a product or service |
| demand deposites | money deposited in a commercial bank that can be taken out by writting a check |
| depression | a long period of economic decline with low prices,high unemployment and many business failures |
| economics | a social science dealing with the production, distribution, and consumption of goods and services |
| entreprenuer | one who brings together economic factors, such as land, labor, and capital,so as to make profit |
| equilibrium price | (market clearing price)the price at which buyers are willing to buy and sellers are willing to sell |
| federal reserve system | the entire U.S banking systems of twelve federal reserve districts |
| gross income | the total income earned before deductions for expenses |
| income tax | a tax on the net income of an individual or corporation |
| inflation | a decrease in the purchasing power of money that results from rising prices caused when the supply of goods is less than the demand for thoese goods |
| interest | payment given to one who lends money to the borrower for the priveledge of using or borrowing |
| law of demand | if all other factors remain consant people are willing to buy more at a lower price than at a higher price. |
| law of supply | if all other factors remain constant, people are willing to supply more at a higher price than at a lower price |
| liability | legal responsibility to fulfill some contract or obligation |
| loan | when one person lets another person use his or her money for a period of time in return for the payment of interest |
| market | all the buyers and sellers during a certain period in time |
| market economy system | the what, how and for whom goods and services will be produced is decided by the buyers and sellers in the market place |
| opportunity cost | what must be given up when one makes a choice |
| partnership | a business that is owned by a group of people; people share the profits and liabilities |
| profit | made after all expences (manufacturing and distribution) have been subtracted |
| scarcity | not enough of something; unlimited wants verse limited resources creates scarcity |
| single proprietership | a busness which has one owner |
| traditional economic system | the what, how, and for whom goods and services will be produced is decided by costoms and traditions |
