Terms I
A political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs.
What is communism?
A political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole
What is socialism?
Unlimited wants + limited resources
What is scarcity?
The number of products you have
What is supply?
A consumer's desire and willingness to pay a price for a specific good or service
What is demand?
A system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale
What us command economy?
A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings.
What is a stock?
What are Mrs. Williams's daughter's names?
Ayla and Abi
What term is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient's income and number of children.
Earned income tax credit
An economic measure of a positive balance of trade, where a country's exports exceed its imports
What is a Trade surplus?
The loss of potential gain from other alternatives when one alternative is chosen
What is opportunity cost?
A document, issued by a sovereign or state, outlining the conditions under which a corporation, colony, city, or other corporate body is organized, and defining its rights and privileges
What is a charter?
Because bonds are considered a safe investment, which characteristic would you expect them to have?
They would take a long time to mature
What term is a voucher issued by the government to those on low income, exchangeable for food?
Food stamps
A company to act as a single entity and recognized by the law.
What is a corporation?
Where market determines prices, not government
What is free enterprise?
A group of individuals, elected to represent shareholders
What is a Board of directors?
What is Sara's middle name
Isabel
Global,Corporate, Consumer, Individual
What are the four levels of opportunity cost?
The process of retrieving defective and/or potentially unsafe goods from consumers while providing those consumers with compensation. Recalls often occur as a result of safety concerns over a manufacturing defect in a product that may harm its user.
What is a recall?
Money available after taxes & necessities
What is discretionary income?
A situation in which the demand for a product or service exceeds its supply in a market.
What is a shortage?
Used to calculate a number of years to double the investment.
What is the rule of 72?
Barter, money, credit
What are the three factors that are important to have an acceptable medium of exchange?
The highest point between the end of an economic expansion and the start of a contraction in a business cycle
What is the peak?