supply and demand
the relationship between price and quantity demanded of a good or service
demand
widespread use of power driven machinery and the economic and social changes that occurred in the 1800s
industrial revolution
prices in the economy falling
deflation
item of value that a firm or individual owns
asset
a tax based off the income of an individual
income tax
quantity demanded is equal to quantity supplied
equilibrium
the accumulated skills and education of workers
human capitol
a general and ongoing rise in price levels in an economy
inflation
imminently transfers money to seller, at the end of the month the user owed the money spent, like a short term loan
credit card
a tax on people that pass assets to the next generation in the form of a gift
estate/ gift tax
loss in social surplus when market produces an insufficient quantity
dead weight loss
the plant and equipment that firms use in production, including infrastructure
physical capital
a measure of inflation based on the prices of merchandise that was exported or imported
international price index
any amount of debt an firm or an individual owes
liability
tax imposed on corporate profits
corporate income tax
resources such as labor, materials and machinery that are used to produce goods and services
inputs
a component of physical capital such as roads and rail systems.
infrastructure
an outburst of high inflation that often occurs when economies shift from a controlled economy to a market oriented economy
hyperinflation
funds banks keep on hand that the bank does not loan out or invest
reserves
a tax that collects a greater share of income from those with high incomes than those with low incomes
progressive tax
the common relationship that a higher price leads to a greater quantity supplied and a lower price leads to a lower quantity supplied while all other variables are constant
law of supply
pattern in which economy's with low per capita incomes grow faster then economies with higher per capita incomes
convergence
a measure of inflation based on the price level of a fixed basket of goods and services
consumer price index
the cost associated with finding a lender of borrower of money
transaction cost
a tax that is a flat percentage of income earned, regardless of level of income
proportional tax