Exam Vocab Flashcards
(25 cards)
Capitalism
People make their own decisions about saving resources in the use of goods and services
Quantity
How much
Free enterprise
Individuals can undertake government activities with little or no government control
Command economy
Run by the government and makes most of the decisions
Factors of production
Resources for producing goods and services to satisfy people’s wants
Profit
Difference between what it costs and what that buyer pays
Mixed economy
An economy of three basic systems
Opportunity cost
When scarce resources are used for one purpose than another
Interest
The payment for the use of capital
Demand
The amount of a product that buyers are willing and able to buy at a different price
Labor unions
Workers formed to protect members rights
Collective bargaining
Representatives of unions and businesses trying to reach agreement about wages and working conditions
Fringe benefits
Indirect payments of their work
Liquidity
Turn savings back into cash
Dividends
Payments from the profits of companies in which they own stock
Variable expenses
Expenses that change from month to month
Disposable income
Amount of money left after taxes have been paid
Fixed expenses
Expenses that are paid regularly
Fiscal policy
Decisions about the amount of money it spends and collects in taxes
Monopoly
Single business with power to control price in a market
Monetary policy
Regulation of money supply by the federal reserve system
Trust
Companies that benefit from high prices they all agree to change
Federal budget
Governments plan oh how it will raise and spend money
Money supply
Total amount of money available for use as a medium of exchange
