Economics row 1
Definition
Definition
Definition of supply and demand
the amount of a commodity, product, or service available and the desire of buyers for it, considered as factors regulating its price.
What are the 3 basic c's of creditworthiness
capacity, character, and collateral
What is theory of wages
This theory state that, under the condition of perfect competition, every worker of same skill and efficiency in a given category will receive a wage equal to the value of the marginal product of that type of labor.
What are the different types of taxes
direct and indirect, progressive, proportional, regressive
What are Credit scores
A credit score is a prediction of how likely you are to pay a loan back on time based on information from your credit reports. designed to represent your credit risk, or the likelihood you will pay your bills on time.
Definition of wages
a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker.
What are the 3 basic economic questions
(1) What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services?
What does equilibrium price mean
the market price where the quantity of goods supplied is equal to the quantity of goods demanded.
What are the Positive/Negative Externalities
A negative externality occurs when a cost spills over. A positive externality occurs when a benefit spills over
What is a price floor/ceiling
A price ceiling keeps a price from rising above a certain level—the “ceiling”. A price floor keeps a price from falling below a certain level—the “floor”.
Definition of Bankruptcy
the state of being completely lacking in a particular quality or value.
What are the 4 Phases of the Business Cycle
expansion, peak, contraction, and trough.
What is a production possibility curve?
It shows the combinations of two goods an economy is capable of producing.
What are the Characteristics of money
portability, divisibility, durability, acceptability, uniformity, scarcity, and stability of value; meaning it should be easy to carry around, can be divided into smaller units, can last for a long time, is widely accepted by people, is consistent in quality, is limited in supply, and maintains relatively stable purchasing power.
What does it mean to be Securing a loan
loans that are secured by a specific form of collateral, including physical assets, such as property and vehicles, or liquid assets, such as cash
Definition of Federal Reserve
the U.S. central bank, created by the Federal Reserve Act of 1913 to establish a monetary system that could respond effectively to stresses in the banking system.
What are the Different types of business structures
sole proprietorship, partnership, corporation, and S corporation. (LLC, Corporation, etc)
What do the shifts on a graph represent?
if the income level of a population increases, the demand curve will shift to the right, since there is more quantity of demand at every price point.
Purpose of health, life and property insurance
protects you from unexpected, high medical costs. covers damage or loss by theft and against perils which can include fire, and storm damage. to help provide financial security to your loved ones upon your death. Helps protect a person from unexpected causes.
What is the risk and reward relationship
The risk/reward ratio—also known as the risk/return ratio—marks the prospective reward an investor can earn for every dollar they risk on an investment.
Definition of diversification
the process of a business enlarging or varying its range of products or field of operation.
What are the different Market Structures
perfect competition, monopolistic competition, oligopoly, and monopoly.
What is the Concept of the “invisible hand”
The invisible hand is a metaphor for the unseen forces that move the free market economy. Through individual self-interest and freedom of production and consumption, the best interests of society, as a whole, are fulfilled.
What are Opportunity Cost & Trade-offs
trade-off - the giving up of one thing in return for something else. Opportunity cost - what you give up to get what you want.
What are the Factors of Production
The factors of production are land, labor, capital, and entrepreneurship