Siamese
people giving up something in order to receive something they would rather have
Exchange
the management of the money supply and interest rates
monetary policy
study of how society chooses to employ resources, and distribute them for consumption among competeing groups and individuals
Economics
studies the operation of a nation's economy as a whole
Macroeconomics
studies the behavior of people and organizations in a particular market
Microeconomics
items that the consumer either does not know about or knows about but does not initially want
unsought goods
the balance of trade plus other money flows such as tourism and foreign aid
Balance of payments
measures changes in the prices of about 400 goods and services that consumers buy
consumer price index (CPI)
refers to the % of people at least 16 years old who are unemployed and tried to find a job within 4 weeks
unemployment rate
Shipping and transportation, delivery to customers
distribution
use of goverment regulations to limit the import of goods and services
Trade Protectionism
a country has a monopoly on a certain product or can produce the product more efficiently than any other country
Absolute advantage (there are few examples of absolute advantage)
government efforts to keep economy stable by increasing or decreasing taxes or government spending
Fiscal policy
encouragement of the progress or growth or acceptance of something
promotion
Responsible for managing cash flow and raising new funds.
Treasurer
increase government spending and cut taxes in order to stimulate the economy when the economy is in a recession.
Keynesian economics
the activity of recording business transactions
bookkeeping
Responsible for planning, monitoring (comparing planned spending with actual spending), producing financial data for the senior management team, analyzing major financial decisions
Financial controller
Inexpensive products that are purchased regularly and require little time and effort for purchase decisions
convenience goods
part capitalist and part socialist, business privately owned but taxes are high and income is redistributed
Mixed economy
part of a building that cannot be moved; personal property so securely attached that it becomes part of the real estate
fixtures
a financial statement that shows the flow of money in and out of the business; it shows the real cash that is available to keep the business running
cash flow statement
a country should make and then sell those products it produces most efficiently but buy those it cannot produce as efficiently
theory of comparative advantage?
taxes built up over time; unpaid taxes
accrued taxes
assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have value
intangible assets