Money: Coins & Paper
Made of layers of different metals
Clad Coin
A government program for giving away money or goods, usually to poor people
Welfare
If the supply of something goes up, the price per unit of that thing goes down. When the supply goes down, the price goes up.
Law of Supply and Demand
Papers printed by government that citizens use for trade
Dollar
The money a person gets for his work
Wages
Made entirely of 900 silver
Fine Silver
Reducing the value of a coin by reducing the amount of precious metal in it
Debasing
An increase in the amount of money which causes the money to lose value, so prices rise.
Inflation
Most easily traded thing in society. Economists call it the most liquid commodity
Money
Result of inflation - increase in money supply →
Businesses increase prices → workers demand an increase of wages → businesses increase prices → Workers demand increase wages..
Wage Price Spiral
Made of non-precious metal, like copper or nickel
Base Metal
The notches on the edge of a coin
Reeding
Federal Gov'ts attempt to measure changes in prices of items purchased by households.
CPI
Consumer Price Index
A wafer or disk of precious metal. True ones have three markings; weight, fineness, name of mint
Coin
Government forbids increase in wages and increase in prices -> no work -> no production -› shortages -> tighter controls -> black markets -› starvation
Wage Price Control
A disk made of base metal which can be used as a substitute for a coin
Token
Shaving the edges of a coin in order to get some of the precious metal from the coin
Clipping
Overthrowing a government, usually by force
Revolution
The mint-mark of a coin. Tells who made the coin. Like a trademark.
Hallmark
Buying, selling, or making of something against the wishes of the government
Black Market
The way governments get money, by force if necessary
Tax
A law of economics that means almost nothing is free, someone must pay for it
TANSTAAFL
There Ain't No Such Thing AS A Free Lunch
System to compare the value of the U.S. dollar to other currencies. (hint: hamburger)
Big Mac Index
Originally IOU from a bank, usually for gold or silver.
Bank Note
(aka paper money)
Amount of money in a country or economy
Money Supply