Financial Literacy
Terms
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- equilibrium
- price at which the quantity demanded by consumers equals the quantity supplied by producers
- economic want
- things people what to have and are willing to pay
- entrepreneurship
- when a person takes a risk to earn a profit
- producer
- someone who makes a good or service
- goods
- tangible items of value
- marginal cost
- additional cost from having one more unit of something
- real flow
- the movement of goods, services, and resources in the community
- supply
- how much good/services sellers are willing to provide for sale at a series of prices
- services
- intanigble items of value
- market
- sum of contact between the buyers and sellers of an item
- inflation
- rise in the overall level of prices of goods and services in the economy
- resources
- things used to produce goods and services
- exports
- goods and services a country produces and sells to other countries
- national debt
- the sum of annual budget deficits
- competition
- producers compete to get high price, consumers compete to get low cost
- fiat money
- no intrinsic value (e.g. dollar bill)
- surplus
- when govenment spends less then it receives in taxes
- Federal Fund Rate
- interest rate charged on loan between 2 commercial banks
- natural resources
- land, water, trees
- prime rate
- interest rate charged by banks to most credit worthy borrowers
- structural unemployment
- people laid off because of change in technology or fall in demand for good they produce
- economic way of thinking
- comparing marginal benefits to marginal costs
- discount rate
- feds interest rate charge on loan to commercial banks
- money flow
- the movement of money in circular flow of economic activity
- interest
- what people pay when they borrow money from someone (price of money)
- economics
- making wise decisions in the face of scarcity
- buyers
- people who buy goods and services
- PACED
- decision making process (problem, alternative, critieria, evaluate & decision)
- opportunity cost
- the hightest alternative value
- monetary policy
- actions taken by the Fed to affect the money supply
- frictional unemployment
- people voluntarily and temporarily between jobs
- imports
- goods and services a country buys from other countries
- cyclical unemployment
- people who can not find jobs because of recession in economy
- human resources
- labor, workers, entrepreneurial ability
- microeconomics
- study of individual decision making units in country
- deficit
- when goverment spends more than it receives in taxes
- commercial banks
- goal is to make profit by using money
- money
- checking accounts, cash, coins, travelers checks
- profit
- the difference between revenue and total cost
- fiduciary
- having faith in the value of the US dollar because of the faith in the government which issued it
- open market operations
- buying and selling government bonds by Fed
- commodity money
- has intrinsic value in what it is made of (e.g. gold)
- government bond/securities
- issued by the Treasury to fund the federal government budget deficit
- barter
- the exchange of goods and services without using money
- macroeconomics
- national decision making units in country
- capital resources
- tools, equipment, factories
- marginal benefit
- additional benefit from having one more unit of something