Markets
Anywhere sellers offer goods and services and buyers purchase them
What is a Market?
Money that has value not based on its relation to a commodity but by a nation's government declaring that its money is legal tender
What is Fiat Currency?
Concentrating on one kind of work
What is Specialization?
A series of economic expansions and contractions
What is a Business Cycle?
Things of value that employers provide that are usually not taxable
What are Benefits?
The total of all goods and services that all households, companies, and the government are willing and able to buy at any price in a given period of time
What is Aggregate Demand?
The price of borrowing money
What is Interest?
A tax placed on goods that businesses import
What is Import Tariff?
The most common type of business organization in the US
What is Sole Proprietorship?
The price of labor
What is Wages or Salaries?
All else being constant, as the price for a product or service increases, production will increase
What is Law of Supply?
A general, across the board increase in prices throughout the economy
What is Inflation?
Government payments to industries that compete in a world market where prices are lower than in the producing country
What is Subsidies?
Privately owned and operated and has fewer than 500 employees
What is a Small Business?
Refers to people who are working at jobs that are beneath their skill level but are the only work they can find
What is Underemployment?
All else being equal, when the price of a good or service rises, demand falls
What is Law of Demand?
Money gives you a store of _______ so that you can make purchases in the future
What is Value?
The difference between a country's imports and exports
What is Balance of Trade?
Milton Friedman believed that money supply not keeping pace with output was the cause of economic ______
What is Fluctuations?
Unemployment of people who simply have not had the time to find a job
What is Frictional Unemployment?
The effects from supply and demand activity that affect people who are not the actual buyers and sellers in a transaction
What is Externalities?
The Federal Reserve buys and sells US Treasury Bonds and other _______ to inject money into the economy
What is Securities?
What is Comparative Advantage?
Costs that have to be paid regardless of the rate of production
What are Fixed Costs?
What is a Union?