Economic Vocabulary

Economic Vocabulary
of 29
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  ECONOMIC VOCABULARY   Ability-to-pay principle - The concept that justifies taxing people with larger incomes or wealth more than those with lesser incomes in both absolute and  percentage terms. Absolute advantae -The ability of a country to produce a good or service more cheaply than another. Acceptability - A characteristic of money that permits it to be accepted in the market as a medium of exchange. Ac!uisition - When one firm takes over another ( usually by purchasing a controlling portion of common stock. Accountin pro it - What is left after subtracting the sum of all explicit costs from total revenue. Acreae-allot#ent prora# - A government program in which a total number of acres for planting agricultural products is determined and followed by allocating that number among individual farmers. !nly farmers who restrict their plantings tothe allotted acreage may participate in the support price system. Ad#inistered price - rices that are set by management and not determined exclusively by demand and supply.  Ad valore# ta$ - A levy applied to the value of what is being taxed# particularly imports.  A ir#ative action - A policy to actively locate and hire women and members of minority groups.  Aency s%op-  A contract in the workplace in which employees must pay union dues whether they become members of the union or not.  Areate supply - The total spending in the economy for a given  period. $pending by consumers# investment by businesses and expenditure by government ( The %eynesian formula & '  ' ) * + is aggregate demand.  Areate supply - The value of the products the economy is willing to produce.  Aricultural Ad&ust#ent Act - assed in ,# this act established the basis for American agricultural policy by restricting output and providing price supports through the parity concept.   Aid to 'a#ilies (it% )ependent C%ildren *A')C+-  A joint state- and federally funded transfer program that provides payments to poor families with dependent children.  Allocative e iciency - The distribution of resources to producers and consumers in such a way to maximi/e satisfaction according to the preferences of that society.  Annually balanced budet - The idea that the federal government should balance its expenditures with its revenues every year.  Antitrust policy - 0aws# designed by agency decisions and court verdicts# to enforce competition and curb restraint of trade and monopolistic practices.  Appreciation - The increase in the value of one currency in relation to other currencies.  Arbitration - 1ethod of settling a labor dispute when both parties agree to abide  by the decision of a third party.  Assess#ent - The official valuation of property or income for tax purposes.  Asset - Any item that an individual or a business owns that has economic value.  A, account - An automatic transfer service that shifts money from a savings account to a demand deposit account to cover checks as they are drawn.  Auto#atic *built-in+-  A built-in tool that compensates for changes in  business activity without re2uiring changes in government policy.  Averae cost *AC+ or averae total cost *A,C+-  The total cost of production divided by the number of units produced. t is also the sum of average fixed costs and average variable costs. t is also known as cost per unit or just unit cost.  Averae i$ed cost - 3ixed costs divided by units produced.  Averae p%ysical product - Total output divided by the number of units of a factor of production used to produce it.Average propensity to consume (A &- The percentage of disposable income that is saved.  Averae revenue - Total revenue divided by the number of units sold.  Averae variable cost - Total variable costs divided by the number of units  produced.   Balanced ro(t% policy - A program designed to produce growth in all sectors of the economy at the same time.  Balance o pay#ents - An accounting statement showing a nation4s total financial transactions with all other countries. 5xports are listed as credits and imports as debits.  Balance o trade - The difference between the value of a nation4s exports and imports.  Balance s%eet - A financial report on a firm4s assets# liabilities and net worth at a  particular time. Ban/ %oldin co#pany - A corporation created to hold the stock of other financial institutions.  Ban/ note - aper money that is issued by a commercial bank.  Barriers to entry - !bstacles that make it difficult for new firms to enter a market.  Barter - The direct exchange of goods for goods rather than using money as a medium of exchange.  Base year - A reference point when constructing an index to measure changes# suchas the consumer price index.  Bear-t%y-nei%bor policy - A policy designed to increase domestic demand by imposing tariffs and 2uotas on foreign goods. 6esigned to reduce domestic unemployment at the expense of higher unemployment in foreign countries.  Bene it principle - The idea that people who receive the most benefits from government should pay the highest taxes. Bilateral #onopoly - A market in which there is only one buyer and one seller of a resource or product.  Blac/ list - A list of workers# usually union organi/ers# circulated by employers to  prevent those on the list from getting jobs.  Blac/ #ar/et-  An illegal market where goods are sold above the maximum or ceiling prices.  Bond - An interest-bearing certificate issued by a government or a corporation in exchange for borrowed money.   Boo# - A period of great business activity where demand exceeds supply and  prices increase.  Boureoisie - Those who own property or capital as contrasted with the proletariat or working class. They are considered below the aristocracy and above the  peasants and factory workers.  Boycott - A refusal to buy or sell a good or a service in order to exert pressure to achieve a goal. 1ost commonly it is a labor union against an employer in order to win a concession.  Brea/-even point-  A level of output where the total revenue is e2ual to the total cost or where the cost per unit is e2ual to the price.  Budet - A plan of expected income and expenditures for a given period.  Budet de icit - When expenditures exceed revenues in a given time. $ometimes  planned by governments to stimulate the economy.  Business cycle - 3airly regular changes in business activity involving expansions and contractions. & '  ' ) * +- The %eynesian formula showing aggregate demand# personal consumption plus business investment plus government expenditures# determining aggregate income. &apital- Any human-made instrument used in the production of other goods and services# such as tools and machines. &apital consumption- The value loss to capital that occurs in the production  process. The difference between gross national product and net national  product. Also know as depreciation. &apital deepening- When capital is added to the production process in a ratio faster than other factors of production.&apital good- A good used in the production of other goods rather than for consumption. &apitalism- An economic system in which the means of production are privately owned and resources are distributed by the market with minimal government interference. &artel- A group of sellers who get together to control output and to raise prices in order to invrease profits.
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks