ECON 625
Terms
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- productivity
- how much output comes from a unit of a resource, influenced by technology
- cyclical unemployment
- recession in economy
- money flow
- movement of money
- income
- payments received by sellers of resources over a period of time, (spend, tax, save)
- human capital
- education, skills, training
- liquidity
- the ease with which an asset is converted to money
- entrepreneurship
- when a person takes a risk to earn a profit
- business sector
- firms that buy resources and produce goods
- command economic system
- government driven
- open market operations (OMO)
- Fed buying and selling gov bonds
- unemployment
- looking for a job
- market economy
- same as free enterprise, emphasize role of markets (advertising)
- natural resources
- land, water, trees
- resources
- factors of production (labor, land, capital)
- discount rate
- interest rate charged by Fed on loans to commercial banks
- incentives
- influence whether people want to do things
- resource allocation
- determined by profits/prices, prices of resources as determined in the markets by which the resources are allocated
- commercial banks
- profit from using money by interest spread, loan at higher rate
- work
- activities to produce goods and services
- monetary policies
- changes in money supply, Federal Reserve
- transfer payments
- made by government in household sector (welfare, unemployment)
- economics
- making wise decisions in face of scarcity
- role of government
- laws set in regulating economic activities and improving economic conditions
- functions of money
- medium of exchange, standard of value, store of value
- wants
- things people are willing to pay for
- opportunity costs (tradeoffs)
- the highest valued alternative to an action chosen
- real flow
- movement of goods, services, or resources
- market (price) economic system
- supply/demand, free enterprise
- goods
- tangible items
- scarcity
- key economic problem, not enough to satisfy wants
- taxes
- provide funding for government spending
- circular flow model
- view of relationships that exist among sectors and markets
- supply
- how much sellers are willing to put on the market for sale at a series of prices
- TINSTAAFL
- no free lunch, every action has a cost
- marginal cost
- additional cost from haing one more unit of something
- structural unemployment
- laid off because of technology or demand of good
- Federal Reserve Bank
- control money supply
- exports
- sells to other countries
- needs
- things for survival
- payments to resources
- wages (labor), rent (land), interest (capital), profit (entrepreneurs)
- economic development
- countires grying to improve their ability to produce more goods and services in a way that benefits them; long-term
- jobs
- specific activities to earn income
- commodity money
- has intrinsic value in gold, silver
- inflation
- rise in prices in economy
- subsidies
- forms of assistance provided by government to businesses
- free enterprise economy
- limited government role
- inflation rate
- change in price level from one year to next
- allocative efficiency
- producing what people want with scarce resources
- market
- contact between buyers and sellers of an item
- wants
- would like to have
- microeconomics
- individuals, people (supply/demand)
- tradition economic system
- what family did
- opportunity cost
- highest valued alternative to the item chosen
- national debt
- "public debt" sum of annual budget deficit
- growth
- increase of output of a society, improvements in technology
- inflation
- rise in the overall level of prices of goods and services in the economy
- choice
- must happen because of scarcity
- businesses
- organizations that bring together resources to make/sell things
- price
- dollars paid for good or service, relative value
- economic decision making
- goals, constraints, alternatives
- fiscal policies
- changes in government spending, taxing (Pres, Congress rebate checks)
- economic way of thinking
- comparing marginal benefits to marginal costs
- capital resources
- equipment, factories, tools, not money
- mixed economy
- most decisions made by individuals, active government involvement
- business risk
- uncertainty associated with decisions made by a business
- imports
- buys from other countries
- government-provided goods and services
- things governments make available to society
- revenue
- money coming in
- fiat money
- does not have intrinsic value (cost of paper, printing)
- national economy
- macroeconomics, "big picture" affects entire population
- government regulations
- prevent the actions of one part from causing harm to another, minimum wage law, safer work facilities
- productive efficiency
- producing a given output level with fewest resources
- investment
- businesses acquiring new factories, buying stocks/bonds
- services
- intangible items
- trade (specialization)
- countries specialize in producing goods/services for "comparative advantage"
- marginal benefit
- additional benefit of having one more unit of something
- interdependence
- international trade, rely on other countries from some goods/serives
- household sector
- individuals/families that provide resources and buy goods
- federal funds rate
- interest rate charged by one commercial bank to another on overnight loan
- money
- M1, chekcing accounts, cash, coins, travelers checks, debit cards (not credit cards or savings acct.)
- human resources
- works, entrepreneurs
- barter
- exchange of goods and services without using money
- save
- decision not to spend money so available later
- producers
- people who produce goods and services
- interest
- price of money
- economic activities
- decide levels of spending
- consumers
- buyers of goods and services
- scarcity
- want more goods and services than can be produced
- foreign sector
- other countries not included in "closed economy" model
- reserve requirement
- percentage of customers' deposits bank must hold
- frictional unemployment
- voluntarily leaving work place
- choice
- deciding what to slect in the face of scarcity
- economic institutions
- laws that define property rights, banking systems, trade laws that play a role in growth and productivity