Historical Terms #4

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  1. Net Worth
    total value of assets, minus liabilities
  2. Econonmy of Scale
    the relationship that occurs when increase efficiency lowers manufacturing costs as more of a product is made
  3. Chapter 11
    US bankruptcy code that allows a company to reorganize. The company is placed under a trusteeship and its debt is spread out over time or reduced
  4. Capital
    a company's available resources
  5. Asset
    a company's possession that has value
  6. Trade Deficit
    a condition that exists when the value of a nation's imports exceeds the value of its exports
  7. Subsidy
    government assistance to pay for items that are in the public interest but cannot be supported by the economy
  8. Market Economy
    an economoy dominated by buying and selling with little interference form a gonvernment
  9. Gross National Product
    the total value of goods and services produced by a nation during a specific time (Includes domestic and overseas investments)
  10. Free Trade
    A policy in which tariffs are reduced or eliminated between nations to encourage trade
  11. Gold Standard
    a term used when the currency of a country is backed up by a quantity of gold
  12. Entitlement
    Government funds issued to certain individuals because of a prescribed need
  13. Default
    a condition that exists when a borrower cannot repay a loan
  14. Capital Gain
    an increase in the value of an asset between the time it is bought and the time it is sold
  15. Agrarian Economy
    a pre-industrial economy
  16. Commodity
    a raw material such as wheat, corn, or oil that cna be sold
  17. Net Pay
    the amount of income after all deductions and taxes are paid
  18. Gross Income
    an individual's income before taxes, health insurance, and other deductions are paid
  19. Chapter 13
    a US bankruptcy law that allows an individual 3 to 5 years to pay off their debt
  20. Security
    a certificate issued by a corporation or a government that has value/ stock/ bond are the most common
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Historical Terms #4
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