Vocabulary
Anything of value that is accepted in return for goods or services.
Money
The opposite of perfect competition.
Monopoly
Paper money needs to be strong and last a long time.
Durability
The mechanism a nation uses to provide and manage money for itself.
monetary system
A tax individuals and corporations must pay on their earnings
Income tax
A period of economic contraction that is severe and lasts a long time.
Depression
When a few large company dominate an industry.
oligopoly
A way to divide money into smaller units.
Divisibility
The total amount of money available at a giving time in an economy.
Money supply
Consumers pay this on the price of goods and services they buy.
Sales tax
Data that economists use to evaluate the overall health of the economy.
Economic indicator
It exists as a goal, but is never fully achieved.
Perfect competition
To make purchases, people must be able to carry money with them.
Portability
The interest rate federal reserve bans charge commercial banks or credit when they borrow.
Discount rate
Owners must pay this on the assessed value of their property.
Property tax
Making a secret agreement to engage in illegal or dishonest activities
Collusion
A large number of businesses sell similar, but not the same, products and at different prices.
Monopolistic competition
The value of money must be stable over time in order for it to be widely accepted
Stability
To lower the discount rate.
Economic slowdown
Tax heirs must pay on the value of an estate that is greater than the exemption the law allows.
Estate tax
Money that is used in exchange for goods and services needed by individuals, businesses, and governments.
Medium of exchange
Prohibits price fixing and other unfair trade practices.
The Clayton Antitrust Act of 1914
To be accepted,money must be immediately recognizable.
Recognizability
refers to the feds buying or selling of treasury securities in the market place.
Open market operations
what is levied by federal and state governments on the sale and transfer of certain items
Excise tax