Vocab 1
Capital
All things needed to start a business. You need this when starting a business
Labor
The work of humans in your business
Production
Services
things that your business does that aren't products. Like nail salons, bike repair shops.
Producer Goods
Materials and parts to MAKE the goods.
Consumer Goods
Finished products
Budget Surplus
Revenues exceed expenditures.
Goods
Actual things that your business makes.
Distribute
Taking products to where they are sold. Usually by truck or ship
Entrepreneurs
Working for yourself. Starting your own business.
The store that sells to consumers
Markets
The buying and selling of goods and services.
Raw Materials
Things like gold, diamonds. Materials that make the products
Infrastructure
Physical things that run a country. Roads, bridges, internet, air traffic system
Monopolies
Single companies own entire industries.
Recession
A downturn in the economy.
Interest
The proportion of a loan that is paid for the use of money lent.
Whole sale
Selling things in larger quantities to businesses before they go to retail
Expenditures
What we spend
Money taken in. From jobs, SS, etc.
Labor Unions
Stands up for worker rights.
Occupational Safety and Health Adm. What does it protect?
Agency that protects workers on the job.
Depression
Worse than a recession.
Supply and Demand
Sellers have so many items. Sometimes a lot. Sometimes not very much. Buyers want things. Sometimes we want them a lot and sometimes we don’t want the items. This all determines price.
Compensation
A combination of wages and benefits.
Business Cycle
A pattern where the economy goes up and recovers. Then predictably prices get too high, and the economy goes down.
Laisse-faire
A theory that if businesses are free to do what they want, this is a good thing.
Fiscal Policy
Policy of raising or lowering taxes.
Free Market Economy
This is what the United States is. We can start are own business. The government doesn’t tell us where to work.
Free Market System
Buyer and sellers and free to buy and sell as they want.
Federal Reserve Banks
Central Banking System. The top Bank in the United States. Determines interest rates. Prints money
Collective Bargaining
Unions negotiate wages and benefits with this. Lots of people work to get benefits.
FDIC What does it stand for and what does it do?
Insures your money in the bank up to 100,000.
Inflation
Prices of goods and services go up. Too much money in the economy.
Monetary Policy
The policy of increasing or decreasing interest rates.