definitions Flashcards
(25 cards)
scarcity
not having enough resources to produce everyones wants
diversification
investment in various financial instruments to reduce risk
barter
trading goods pr services for others goods or services without using money
bonus
a payment to an employee above their standard pay for a good well job
demand
that quantity of a good or service that are willing and able to buy at all possible prices during a certain time of period
budget
a plan for managing income spending and saving during a given period of time
labor
the quantity and quality of human effort directed toward producing goods and services
seasonal employment
employment during a certain season, with specific weather conditions
legal guardian
a person or persons with legal authority and duty to care for the personal and property interests of another person
penny stock
stocks that are traded for less than $5 a share and are considered high risk
financial investment
placing money in a savings account or in a number of finacial assets such as stocks bonds or mutal funds with the intention of making a finacial gain
human capital
the knowledge and skills that people obtain through education, expirence and training
profit
The amount of revenue that remains after a business pays the costs pf producing a good or service
net income
total amount of income earned in a given period before any deductions or taxes paid
producers
people who make goods and services
stock
a financial investment that conveys ownership in a company
gross income
The amount of income left after taxes and other business expenses are deducted
enterprenuer
and individual who is willing to take risks to develop new products and start new buisness
risk
the chance of loss
saving
keeping some income to buy things in the future
Opportunity cost
The value of the next best alternative when a decision is made what ia given up
spending
using some or all of your income to buy things you want
taxes
fees charged by the government and business and individual income activities property or products that people are required to pay
consumers
people who buy goods and services to satisfy their wants
