Economics
this is for mrs. hertlers economics class.... =]
Terms
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- corporate manages it for them
- business organization that enable owners to hire specialists
- economics
- a social science
- balance sheet
- summarizes the value of what a business owns and what it owes
- rationing
- allocating something scarce among ppl who want more than is available
- liquidity
- the ease of turning savings and other investments into cash
- market demand
- the sum of all individuals demands in a given market
- goods
- items of value that can be seen and touched
- resource markets
- where u exchange your labor for money to spend on goods n services
- information
- market prices provide this for producers and consumers
- price elasticity of demand
- describes how much a change in price affects the quantity demanded
- advertising
- paid announcements
- retained earnings
- profits that business save and invest i their operations
- economic growth
- increased production of goods and services.
- IPO market
- primary market where companies sell stock to raise money
- financial goods
- a budget will help u achieve them
- price system
- provides signals for what will be produced
- stockholders
- owners of a corporation who may share in the profits
- safety and choice
- key ideas from the consumers bill of rights
- services
- another name for a market economy
- apr
- annual interest rate charged for a loan
- incentive to produce
- reasons for priducing goods and services
- market
- an arrangement that allows ppl to make exchanges with one another
- dividends
- profits distibuted to the owners of a corporation
- common stock
- a share of ownership
- basic economic decisions
- how ppl in a society make the what, how and who decisions
- consumers
- those who buy goods and services
- bond
- a long term IOU issued by a business
- trade credit
- supplier allowing a business to charge purchases
- circular flow
- the movement of money, products, and resources btwn households n businesses.
- scarcity
- the inability to satisfy all of everyones wants.
- free enterprise
- items of value that cannot be seen or touched.
- franchise
- license allowing a business to operate as if it were part of a land chain
- medium of exchange
- a function of money that enables ppl to make exchanges more easily with one another
- opportunity cost
- the hightest valued alternative one gives up when making a deciosion
- stock
- a share of ownership in a corporation
- financial markets
- they direct savings into business investment
- expenditures
- money spent
- income statement
- summarizes the revenue and expenses of a business for a period of time
- diminishing marginal utility
- the point reached when the next itme consumed is less satisfying than the one before
- not-for-profit
- type of business organizationthat typically uses revenue for charitable or religious purposes
- property right
- ownership of a good or resource
- limited liability
- obligation to cover debt is limited to the extent of ownership.
- entrepreneur
- takes business risks in hopes of earning profit.
- substitute good
- something used in place of a particular product
- profit
- money remaining after deducting costs form sales
- insurance
- financial protection against the ricks of injury, illness, death, fire, and other misfortunes
- capital resources
- machinery and tools
- compound interest
- computed on both the amount saved and previously paid interest
- supply
- the amount sellers want to sell at different possible prices
- stock market
- the purchase and sale of stocks issues by corporations in the past occurs here
- complementary goods
- items that ppl typically use together such as peanut butter and jelly
- competition
- rivalry among businesses for the consumers dollar.
- model
- a simplified representation or map of an economy
- budget
- financial plan summarizing investments and expenditures
- board of directors
- elected represenatives of a corporations shareholders