United States in the Global Economy
A lower relative or comparative cost than that of another producer
What is Comparative Advantage?
represents a claim to partial ownership in a firm/corporation and a claim to the profits that the firm/corporation makes
What is stock?
other things equal, as the price of a good or service rises, its quantity demanded falls
What is the law of demand?
economic way of thinking
What is economic perspective?
the ability to produce a larger total output
what is economic growth?
The US exports goods and services to other nations and imports goods and services from them
What is trade flows? OR What are goods and services flows?
when stock is initially offered to the public
What is an Initial Public Offering?
other things equal, as the price of a good rises, its quantity supplied will rise, and vice versa
what is the law of supply?
Sacrifice of resources necessary to make something
What is opportunity cost?
alternative to the market system, also known as socialism or communism
what is the command system?
decrease in the value of the dollar relative to another country, so a dollar buys a smaller amount of the foreign currency and therefore of foreign goods
What is depreciation?
optional payments of annual profits to stockholders
What are dividends?
occurs when quantity demanded exceeds quantity supplied
What is a shortage?
pleasure, happiness and satisfaction
What is utility?
the use of all available resources. No workers should be out of work if they are willing and able to work
what is Full Employment?
use of resources of an individual, a firm, a region or a nation to concentrate production on one or a small number of goods and services
What is specialization?
stock where the dividends are reinvested into the stock
What is growth stock?
occurs when quantity supplied exceeds quantity demanded
What is a surplus?
looks at specific economic units- individual industry, firm or household
what is microeconomics?
private ownership of resources and the use of markets and prices to coordinate and direct economic activity
what is the market system? OR what is the capitalism?
excise taxes or duties placed on imported goods
What are Protective Tariffs
when a stock’s high price is discouraging new investors, the company splits the stock to a lower price; thus creating more shares at a lower price
What is stock split?
legal minimum that can be charged for a good
What is a price floor?
examines either the economy as a whole or its basic subdivisions or aggregates, such as the government, household, and business sectors
What is Macroeconomics?
production of any particular mix of goods and services in the least costly way
what is productive efficiency?