economics vocabulary 61-80
Terms
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- barter
- is the direct exchange of goods and services without the use of money. Trading the baker some fish for bread is an example of barter, but lets face it; money is more efficient than bartering."
- salary
- is the amount of money you are paid by your employer: regular wages and benefits
- trade
- is a transaction. A trade has a buyer and a seller as well as a price and quantity
- economic incentives
- are factors that motivate and influence the behavior of households and businesses; prices, profits, wages, and losses act as incentives for participants to take action in a market economy. Positive and negative economic incentives work in unison.
- profit
- is what remains (if anything) after a businesss expenses are subtracted from the money received from its sales
- sales tax
- is a tax paid on the purchase of a good or service. Sale taxes are a major source of revenue (money) for many state and local governments. Because poorer people tend to spend a larger share of their income on stuff covered by sales taxes, it tends to be a regressive tax. To reduce this regressive tax, some state and local governments excluded items like food and medicine.
- income
- is the money earned through employment and investments
- voluntary exchange
- is an environment where both the buyer and seller must agree on the exchange. Voluntary exchanges are the heart and soul of market economy. Involuntary government-forced exchanges play an important role in a mixed economy.
- interest
- is the amount paid by a borrower to a lender for the privilege of using the money.
- competition
- refers to the rivalry between businesses in the same market. When special rights are granted, competition may be damaged.
- tax
- is a required payment to a local, state, or national government. A tax is a forced contribution of wealth to meet the public need for government.
- unemployment
- refers to not having work, being jobless
- choice
- is the act of selecting among alternatives, a concept crucial to economics
- satisfy
- means to fulfill the requirements or expectations; to get what you want
- savings
- is money set aside so that it can be used later. Savings is the income that is not spent
- currency
- is the metal or paper medium of exchange that is presently used
- money
- is anything that people generally accept as payment for goods and services. Money serves a number of functions: it is a medium of exchange, it is a standard of value, and it can be used as a store of value.
- exchange
- is the trading of goods and services with people for money or other goods and services.