Economics Vocab
Economics Vocabulary List
Terms
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- Liquidity
- ability to converted an asset into cash quickly
- Tariff
- a tax on an imported product
- Marginal Utility
- the extra usefulness gained from consuming one more unit of a product
- Consumer Sovereignty
- the concept that the consumer is the ruler of the market
- Consumer Price Index
- statistic that measures overall changes in price or inflation over time
- Supply
- the amount of a product that would be offered for sale at all possible prices that could prevail in the market
- Capitalism
- economic system in which private citizens own and use the factors of production in order to generate profits
- Depression
- a state of the economy with large numbers of unemployment, supply shortages, and excess capacity in manufacturing plants
- Scarcity
- the condition that results from limited resources combined with unlimited wants
- Gross Domestic Product
- the dollar amount of all final goods and services produced within a country's borders in a year
- Federal Reserve System
- privately owned, publicly controlled, central bank of the United States
- Trade-Off
- alternatives that must be given up when one is chosen over another
- Elasticity
- a measure of responsiveness that tells us how a dependent variable such as quantity responds to an independent variable such as price
- Minimum Wage
- the lowest legal wage that can be paid to most workers
- Unemployed
- people available for work who made a specific effort to find a job during the past month and who, during the most recent survey week, worked less than one hour for pay
- Standard of Living
- the quality of life based on the possession of necessities and luxuries that make life easier
- Deregulation
- relaxation of government regulation on industry
- Money
- any substance that serves as a medium of exchange, a measure of value, and a store of value
- Inflation
- a rise in the general level of prices