Supply and Demand
This curve is always presented as a downward slope.
Demand Curve
The fundamental problem of economics
Scarcity
Costs that stay the same regardless of how much of a good or service is produced
Fixed Costs
a security that represents the ownership of a fraction of the issuing corporation
stocks
This curve always slopes upward
Supply Curve
TINSSAAFL
There is no such thing as a free lunch
a debt security, similar to an IOU.
Bonds
This term refers to where supply equals demand
Equilibrium
Actions done for others in exchange for payment
Total revenue minus total cost equals
[Revenue (-) Cost =]
Profit
When a stock is unpredictable, it is said to be...
volatile
Latin phrase for "all things held constant"
Ceteris Paribus
Buyers compete against...
Buyers
Wrote about the Invisible Hand
Adam SMith
When there is only one owner of a business
sole proprietorship
Stocks from reputable companies are said to be...
Blue Chip Stocks
Shows how much a producer can make and shows the limit of how much an economy can produce
Production Possibilities Curve
Ways that buyers compete when there is a price ceiling
Search Costs
(Time, energy, actually searching for a good)
A good that lasts more than three years
a durable good
A group of companies that produce unrelated goods, owned by a single parent company
Conglomerate
The type of bond that would be used to fund the construction of a local school building
Municipal Bonds
the amount of change in production by adding one additional unit of labor
Marginal Product of labor