| A | B |
|---|
| coincidence of wants | a situation in which two people each want what the other wants to trade a condition necessary for barter to occur |
| division of labor | an approach to production in which different workers specialize in different tasks to achieve savings |
| economics of scale | the benefit of lower per-unit costs that result from large-scale production |
| federal reserve system | the central bank of the United States. The system consists of seven-person board of governors and 12 regional federal reserve banks |
| fungibility | interchangeability;money is fungible in that any dollar is interchangable with any other dollar |
| inflation | an increase in the general price level |
| medium of exchange | an item that's genrally accepted as payment for other items; money serves as the medium of exchange in our economy |
| money supply | the amount of money in the economy; the U.S. money supply available for immediate spending includes currency and checking accounts at depository institutions |
| recession | a time period in which economic activity declines |
| reserve requirements | the percentage of deposits that banks are required to keep either as cash or as deposits at a Federal Reserve Bank |
| self sufficiency | the production by oneself of all the goods and services that one needs |
| standard of value | an item used to define the price of value of other items; money serves as the standard |
| store of value | an item used to save,or to store, purchasing power for future use; the main store of value in our economy is money |
| unit of account | a unit in terms of which the prices or values of goods and servides are expressed; the dollar serves as the unit of account in our economy |
