Term
|
Definition
| quantity measured on horizontal axis and price on vertical axis, supply curve is straight line sloping upward to the right. demonstrates that as the price of goods rises, more is offered for sale. |
|
|
Term
|
Definition
| as the price of a good rises, consumers buy less of it (negative slope) |
|
|
Term
|
Definition
| the number of workers who are involuntarily out of work as a percentage of the labor force |
|
|
Term
| Gross Domestic Product (GDP) |
|
Definition
| dollar value of all final goods and services produced in an economy in one year |
|
|
Term
|
Definition
| a rising average price level |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| a period of two or more successive quarters of decline in real GDP (usually involves a rise in unemployment) |
|
|
Term
|
Definition
| the simultaneous existence of unemployment and inflation |
|
|
Term
| production possibilities curve (PPC) |
|
Definition
| represents all possible production mixes for the economy. the slope represents the opportunity cost of one commodity in terms of another |
|
|
Term
| marginal rate of transformation (MRT) |
|
Definition
| the ratio at which one good can be transformed into the other (i.e. the slope of the PPC) in terms of resource conversion |
|
|
Term
|
Definition
| means of production are privately owned and the coordination of economic activity is done through markets and prices |
|
|
Term
|
Definition
| means of production are owned by the state and a state planning authority coordinates economic activity |
|
|
Term
|
Definition
| a combination of the most attractive features of both capitalism and communism |
|
|
Term
|
Definition
| a mixed system of private and public ownership of resources, governed somewhat by markets but modified by government intervention |
|
|
Term
|
Definition
| structures, machinery and equipment |
|
|
Term
| primary factors of production |
|
Definition
CELL (C)apital (E)nterprise (L)and (L)abor |
|
|
Term
|
Definition
| a process where each firm performs only a part of the process and sells its output to another firm for further fabrication |
|
|
Term
|
Definition
| the orginizational unit within which each economic activity is conducted |
|
|
Term
|
Definition
| a business owned by one person who is subject to unlimited liability |
|
|
Term
|
Definition
| a business owned and operated by two or more people--subject to unlimited liability |
|
|
Term
|
Definition
| the owner of an indebted business c an lose not only the assets of the business, but personal assets as well, to creditors |
|
|
Term
|
Definition
| a legal entity separate from the people who own it. it is able to raise capital funds, produce, distribute, and sell goods and services; incur debt, sue, or be sued, and conduct business affairs |
|
|
Term
|
Definition
| certificates used to raise initial capital through their sale |
|
|
Term
|
Definition
| part of a corporations profits which are distributed to the stockholders of the company |
|
|
Term
|
Definition
| the part of a compnay's profits that are withheld in anticipation of future investments |
|
|
Term
|
Definition
| an IOU issued by a company to raise additional funds, owners receive interest |
|
|
Term
|
Definition
| risk extends only to the number of shares you own |
|
|
Term
|
Definition
|
|
Term
|
Definition
| a tax levied as a percentage of the assessed value of a person's property |
|
|
Term
|
Definition
| taxes that are imposed on a factor of production (such as the personal income tax and the corporate profit tax) |
|
|
Term
|
Definition
| taxes levied on commodities and are then shifted to the buyer or seller |
|
|
Term
|
Definition
| a tax system where the percentage or proportion of income paid in taxes rises with income |
|
|
Term
|
Definition
| (flat tax) where the percentage of income paid in taxes remains constant as income rises |
|
|
Term
|
Definition
| when the proportion of income paid in taxes declines as income rises |
|
|
Term
|
Definition
INSECT 1. change in (I)ncome 2. change in (N)umber of consumers 3. change in price of (S)ubstitute 4. (E)xpectation of price shift 5. change in price of (C)omplement 6. change in (T)aste think: income, number, substitute, expectation, complement, taste (insect!) |
|
|
Term
|
Definition
SORT 1. number of (S)uppliers 2. change in price of (O)ther goods 3. change in price of (R)esources 4. change in (T)echnology |
|
|
Term
|
Definition
| price that equates the quantity supplied with the quantity demanded |
|
|
