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Flashcards in Economics Final Deck (79):
0

Command economy

Government decides how to produce and consume goods

1

Goods

Material that satisfies human wants and provides a utility

2

Traditional economy

Uses custom to decide how to produce goods and services

3

Differentiation

The process of distinguishing a product Or service from others. To make it more attractive to a particular target market

4

Fiat money

Government makes it legal tender to pay debts

5

Blue collar worker

Works in an industrial job and receives wages

6

Sales tax

Tax on the value of a good being sold

7

Export

Good sent to another country for sale

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Screening effect

How employers look at their completion of college shows employers that applicant is intelligent and hardworking

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Progressive tax

percentage paid increases as income increases

10

Semi developed country

Nation with work force, better sanitation, and longer life expectancies

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Structural unemployment

Workers skills don't match the jobs that are available

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Frictional unemployment

While trying to find a job

13

Seasonal unemployment

Because of harvest schedules or industries that shut down for the season

14

Cyclical unemployment

During economic downturns

15

Underemployed

Being overqualified or working part time when you want to work full time

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Trade deficit

Nation imports more than it exports

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Trade surplus

Nation exports more than it imports

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Market economy

Free exchange to decide how to produce and consume goods and services

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Capital gain

Difference between higher selling price and lower purchasing price

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Capital loss

Difference between lower selling price and higher purchase price

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World bank

Provides money and sources to poor countries

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Medicaid

Government health insurance to low income people

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Medicare

Government health insurance to people over 62

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Sole propietorship

Business owned and operated by one person

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Tax

Required payment to a local, state, or national government

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Revenue

Income received by government from taxes

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Income tax

Tax on a persons earnings

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Sales tax

Tax on the value of a good being sold

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Property tax

Tax on the value of your property

30

Corporate tax

Tax on the value of a company's profit

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Proportional tax

Percentage paid is the same for everyone

32

Progressive tax

Percentage paid increases as income increases

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Regressive tax

Percentage paid decreases as income increases

34

Inflation

General increase in prices

35

Money supply

All the money available in the US economy

36

Mediation

Neutral person meets with each side to try to find a solution that both sides will accept

37

Opportunity cost

The best thing given up by making certain decisions

38

Macroeconomics

Study entire economies

39

Microeconomics

Study small economic units, like families or businesses

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Private sectors

Involves individuals and businesses

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Elastic

Demand is very sensitive to a change in price

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Franchise

Right to sell a good or service

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Variable cost

Costs that rise and fall based on the quantity produced

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Currency

Coins and paper bills used as money

45

Dividends

Profits paid to stockholder, usually every quarter

46

Diversification

When a nation has incomes from many different sources that are not directly related to each other

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Entrepreneur

Person that starts their own business

48

Law of demand

When the price is lower, consumers will buy more

49

Law of supply

The higher the price, the more is produced

50

Strike

Organized work stoppage to make employer address union demand

51

Portfolio

A collection of financial assets

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Share

Portion of a stock

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J. D. Rockefeller

Around 1900, started standard oil, the largest oil company in history

54

Scarcity

Shortage

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Standard of living

Level of economic success

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Andrew Carnegie

Around 1900, started US steel and became the richest person in US history

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Patent

License that gives the inventor exclusive right to sell it for a period of time

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Oligopoly

A few large firms dominate the market

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Demand

Desire to own something and the ability to pay for it

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Subsidy

Government payment that supports a business or a market

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Spillover costs

Costs of production that affect people not involved

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Black market

Business without regard for government control

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Rationing

Allocating scarce goods and services without prices

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Price floor

Lowest price a good or service can be sold at

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Monopoly

Market dominated by a single seller

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Marginal cost

The additional cost of producing one more unit

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Wage-price spiral

Cause and effect relationship between price and wage

68

Credit card

Entitles holder to buy goods and services based on promise to pay

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Prospectus

An investment report to potential investors

70

Barter

Exchange of one set of goods and services for another

71

Interest

Price paid for use of borrows money

72

Principal

Amount of money borrrowed

73

Debit card

Check and withdraws money from savings account

74

GDP

Consumer spending + investment + government spending

75

Customs duty

Tax on certain items purchased abroad

76

Tariff

Tax on imported goods

77

Industrialization

Organization of economy for purpose of manufacturing

78

Exchange rate

Value of a foreign nations currency compared to the home nations currency