Consumer Economics Terms – Flashcards
Unlock all answers in this set
Unlock answersquestion
Capital Goods
answer
tool equipment, or other manufactured good used to produce other goods and services.
question
Consumer Goods
answer
good intended for final use by consumers rather than businesses.
question
Scarcity
answer
limited quantities of resources to meet unlimited wants
question
Services
answer
work or labor performed for someone; economic product that includes haircuts, home repairs, ect.
question
Value
answer
worth of a good or service as determined by the market.
question
Private Property Rights
answer
the freedom to own and use our own property as we choose as long as we do not interfere with the rights of others
question
Capitalism
answer
an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, esp. as contrasted to cooperatively or state-owned means of wealth.
question
Command Economy
answer
A central authority makes the major decision about what, how, and for whom to produce
question
Profit Motive
answer
the force that encourages people and organizations to improve their material well-being
question
Sole Proprietorship
answer
business owned by one person
question
Unlimited Liability
answer
The owner is personally and fully responsible for all losses and debts of the business
question
Inventory
answer
the amount of goods on hand
question
Partnership
answer
a business owned by two or more people
question
Corporation
answer
a business owned by stockholders who share in its profits but are not personally responsible for its debts
question
Stock
answer
a shareholder's ownership in a corporation
question
Stockholder
answer
An owner of one or more shares of a corporation
question
Dividend
answer
share of the profits from the business
question
Principal
answer
The money originally invested or loaned, on which basis interest and returns are calculated
question
Interest
answer
a fixed charge for borrowing money
question
Merger
answer
Combination of two or more companies into a single firm
question
Net Income
answer
the amount a person has left after income tax is deducted
question
Depreciation
answer
decrease in value of an asset due to becoming old/outdated or use
question
Cash Flow
answer
Movement of the money you receive and the money you spend.
question
Conglomerate
answer
a group of diverse companies under common ownership and run as a single organization
question
Credit Union
answer
a nonprofit financial institution that is owned by its members and organized for their benefit
question
Nonprofit organization
answer
An organization whose goals do not include making a personal profit for its owners or organizers
question
Demand Curve
answer
graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time.
question
Law of Demand
answer
consumers buy more of a good when its price decreases and less when its price increases
question
Demand
answer
combination of desire, ability, and willingness to buy a product.
question
Elasticity
answer
a measure of responsiveness that tells us how a dependent variable such as quantity responds to a change in an independent variable such as price
question
Supply
answer
an amount of something available for use
question
Law of Supply
answer
the principle that suppliers will normally offer more for sale at higher prices and less at lower prices
question
Supply Curve
answer
a graph of the relationship between the price of a good and the quantity supplied
question
Subsidy
answer
government payment to encourage or protect a certain economic activity
question
Stages of Production
answer
increasing returns, diminishing returns, and negative returns
question
Diminishing Returns
answer
the stage where output increases at a diminishing rate as more units of a variable input are added
question
Overhead
answer
the general expenses of running a business, such as rent, taxes, electricity, and heating
question
Fixed Costs
answer
Costs that do not vary with production or sales level
question
Price
answer
a signal, giving information to buyers and sellers
question
Rationing
answer
a limited portion or allowance of food or goods
question
Rebate
answer
a refund of some fraction of the amount paid
question
Surplus
answer
any unsold product on store shelves or in warehouses
question
Shortage
answer
when supplies do not meet demands
question
Price Ceiling
answer
a legal maximum price that may be charged for a particular good or service
question
Minimum Wage
answer
the lowest legal wage that can be paid to most workers
question
Price Floor
answer
a minimum price for a good or service
question
Target Price
answer
a price floor for farm products
question
Price-Fixing
answer
an agreement between two or more firms on the price they will charge for a product
question
Monopoly
answer
a market in which there are many buyers but only one seller
question
oligopoly
answer
a market in which control over the supply of a commodity is in the hands of a small number of producers and each one can influence prices and affect competitors
question
Laissez-faire
answer
the doctrine that government should not interfere in commercial affairs
question
Strike
answer
stop work in order to press demands
question
Picket
answer
a protester posted by a labor organization outside a place of work
question
Boycott
answer
a group's refusal to have commercial dealings with some organization in protest against its policies
question
Lockout
answer
When management closes the doors to the place of work and keeps the workers from entering until an agreement is reached
question
Great Depression
answer
the economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s
question
Unskilled Labor
answer
labor that requires no specialized skills,education, or training
question
Skilled Labor
answer
labor that requires specialized skills and training
question
Semiskilled Labor
answer
workers with enough mechanical abilities and skills to operate machines that require a minimum amount of training
question
Seniority
answer
higher rank than that of others especially by reason of longer service
question
Arbitration
answer
settling a dispute by agreeing to accept the decision of an impartial outsider
question
Mediation
answer
negotiation to resolve differences conducted by some impartial party
question
Sin Tax
answer
a relatively high tax designed to raise revenue and reduce consumption of a socially undesirable product such as liquor or tobacco
question
Sales Tax
answer
a tax based on the cost of the item purchased and collected directly from the buyer
question
Tax Loophole
answer
an exception or oversight in the tax law that allows some people and businesses to avoid paying taxes
question
Medicare
answer
a federal program of health insurance for persons 65 years of age and older
question
Medicaid
answer
Federal program that provides medical benefits for low-income persons.
question
Tax Return
answer
form used to file income taxes
question
FICA
answer
a tax on employees and employers that is used to fund the Social Security system (Federal Insurance Contributions Act)
question
Pork
answer
a legislative appropriation designed to ingratiate legislators with their constituents
question
Fiscal Year
answer
any accounting period of 12 months
question
Budget Surplus
answer
an excess of tax revenue over government spending(left over money)
question
Budget Deficit
answer
when the government spends more money than it collects in taxes
question
Financial Asset
answer
Claim on the property or income of a borrower
question
Pension
answer
a regular payment to a person that is intended to allow them to subsist without working
question
CD
answer
a debt instrument issued by a bank (Certificate of Deposit)
question
Beneficiary
answer
person entitled to benefits or proceeds of an insurance policy or will
question
Maturity
answer
period of time that must pass for a time deposit to pay the stated rate of interest
question
401(k) Plan
answer
a tax-deferred investment and savings plan that acts as a personal pension fund for employees
question
Bull Market
answer
a period of increased stock trading and rising stock prices
question
Bear Market
answer
A steady drop in the stock market over a period of time
question
GDP
answer
total dollar value of all final goods and services produced in a country during a single year (Gross Domestic Product)
question
Baby Bloom
answer
increase births between 1945 to 1964
question
Depression
answer
a long-term economic state characterized by unemployment and low prices and low levels of trade and investment
question
Recession
answer
A temporary decline in the economy
question
Inflation
answer
a general and progressive increase in prices
question
Labor Force
answer
the total number of workers, including both the employed and the unemployed