Intro to Economics
an economic term for an imaginary unit of satisfaction
Util
representations of objects or concepts, often in a greatly simplified form
Models
if the purchase of your first car gives you a certain amount of utility (utils), how much will your second identical car give?
Less
goods purchased by individuals for personal use
Consumer Goods
this economic system promoted the acquisition of precious metals (1500-1776)
Mercantilism
a business firm that has one owner
Sole Proprietorship
the most prevalent type of stock companies offer, it represents true ownership of the firm
Common Stock
the single biggest reason it is difficult for businesses, especially new businesses, to succeed is
Competition
the exchange of one person’s goods or services for another’s
Barter
in the US, a governmental institution responsible for overseeing the issue of currency, regulating banking activity, and providing banking services to the nation’s commercial banks
Federal Reserve (the Fed)
intangible items are known as
Services
used to see the maximum feasible amounts of two commodities that a business can produce when those items are competing for that business’s limited resources
PPC (Production Possibilities Curve)
goods that experience an increase in demand because of an increase in consumers’ incomes
Normal Goods
when someone who wishes to work cannot find a job
Unemployment
socialism in its most extreme form is called
Communism
a business enterprise with two or more persons as owners
Partnership
distribution of a portion of the company’s profits to shareholders
Dividends
a group of businesses that share common concerns
Industry
a form of money that a government declares must be accepted by creditors if it is tendered (offered) by a debtor
Legal Tender
these seven members guide the Federal Reserve system
any tangible (physical) thing that has a measurable life span
Goods
Any point on the graphed line of a PPC model
Production Efficiency
goods that experience a decrease in demand because of an increase in consumers’ incomes
Inferior Goods
a powerful individual or committee answers the three economic questions in this type of economy
Command Economy
this war, fought in Europe and America was between European neighbors with the intent to obtain their factors of production.
French and Indian Way (Seven Years War)
signing a note, promising to pay if the original borrower cannot is known as
the most well-known and reputable stock exchange in the world
New York Stock Exchange (NYSE)
products that are exactly alike regardless of which firm produced them
Undifferentiated (Products)
anything a society commonly uses and generally accepts in payment for goods and services
Money
the increasing or decreasing of the money supply to influence the economy
Monetary Policy
the satisfaction you give up or the regret you experience for not choosing differently
Opportunity Cost
Any point outside the graphed line of a PPC model
Overreached Resources / Impossible
goods that households may use in place of others
Substitute Goods
private individuals make the decisions that answer the three economic questions in this type of economy
Market Economy
in this form of capitalism, there is no government, private individuals own everything, and make all economic decisions
this does not currently exist
Radical Capitalism
the most popular form of business model in America today
Sole Proprietorship
In what city was the first stock exchange located in the US
Philadelphia
how can a company stand out with an undifferentiated product?
Advertising
a ____________________ bank is due to providing miscellaneous services such as: safe-deposit boxes, cashier’s checks, debit and credit cards, and wire transfers
Full-Service
a specified percentage of depositors’ money that must be kept on hand by banks
Reserve Requirement
turning nuisance goods into economic goods is called
Recycling
Any point inside the line of a PPC model
Inefficient Production
goods that are usually purchased and used together
Complementary Goods
the production of more goods and services because business firms are using more land, labor, or financial capital – this can deplete resources
Extensive Growth
goods and services that benefit all or nearly all of a nation’s people and that private firms or individuals would not choose to produce because they could not do so profitably are known as what type of goods?
Examples include highways and parks
Public Goods
the percentage of new businesses that fail within 5 years
50%
this type of stock comes with less risk than common stock, shareholders receive dividend payments first
Preferred Stock
the most prevalent form of competition in America today
Imperfect Competition
the collection of organizations that assist households in channeling their money to businesses and the government
Financial Market
affects the money supply by buying and selling governmental securities
Federal Open Market Committee (FOMC)
deals with choices made by individual units such as people, households, or business firms
all the natural resources used in production, including animal, vegetable, and mineral resources
Land
The "theory of _________ ________" lends itself to the possibility that a good actually may possess billions of different values
Subjective Value
the production of more goods or services by using existing factors of production with greater efficiency
Intensive Growth
under this form of socialism, the state takes possession of those industries that are the cornerstones of the economy
Social Democracy
a partnership with at least one general partner with unlimited personal financial liability and one limited partner
Limited Partnership
when a company decides to first sell stock, registers their business with a stock market, and and arranges for the sale of their stock through an investment bank
Initial Public Offering (IPO)
known as “selling by a few”, this type of competition exists when there are only a few firms
Oligopoly
the largest participant in financial markets
Commercial Banks
the Fed sets and operates under its own budget, this makes it
Financially Independent
examines large-scale economic choices and issues
Macroeconomics
in production, goods used to produce other goods
Capital Goods
The "Law of ___________" states that everything else being held constant, the lower the price charged for a good or service, the greater the quantity of it people will demand, and the higher the price, the lower the quantity they will demand
Demand
without stable prices, a “_______________” attitude prevails
Wait and See
this economic system was promoted by Adam Smith and means to "let alone"
Laissez-faire (Liberalism)
the biggest downside to a partnership or sole proprietorship is
Unlimited Personal Financial Liability
privately managed stock portfolios
Mutual Funds
this type of monopoly exists because a government has allowed a firm an exclusive right to provide a good of service, a good example is PWC
Legal Monopoly
this financial institution originates with groups of people who have a common interest, such as company employees, teachers, or union members
Credit Union
printed by the US Treasury Bureau of Engraving and Printing, then distributed into circulation through the twelve district banks
Federal Reserve Notes