Econ Vocab

  1. Laissez-Faire
    Philosophy that government should not interfere with business activity
  2. Agrarian
    describes farmland or ownership of farmland
  3. allocate, allocation
    to distribute; set aside for particular purpose
  4. tariff
    tax placed on imported or exported products
  5. embargo
    prohibiton on the xport or import of a product
  6. market
    mechanism that brings together buyers and sellers of a particular good or service
  7. socialism
    economic system in which the government owns some factors of production and has a role in determining what and how goods are produced
  8. communism
    economic and political system in which factors of production are collectivvely owned and directed by the state
  9. distribution of income
    how a nation's income is divided among families, individuals or other designated groups
  10. deficit
    a shortage
  11. scarcity
    not enough of something people want
  12. opportunity cost
    the sacrfice involved in achieving something
  13. invisible hand
    self interest guides the market
  14. equilibrium
    balance, stable prices
  15. price ceiling
    maximum legal price on a good or service
  16. subsidy
    gov. payment to encourage or protect an economic activiy
  17. mixed market
    mix of free market and gov. regulation (US)
  18. unfettered market
    business allowed to function without gov. intervention
  19. market economy
    system where private decisions of consumers pruducers and suppliers determine the allocation of resources
  20. command economy
    gov. makes all economic desicions
  21. inflation
    general rise in prices
  22. staglation
    no economic growth and rising prices at the same time
  23. hyper inflation
    super high inflation prices rise more than 500% per year
  24. fiscal policy
    use of gov. spending and tax collection to improve the economy
  25. diminishing returns
    stage of production where efficiency decreases
  26. fiscal
  27. revenue
  28. factors of production
    labor, land, capital, entrepeneurs
  29. consensus
    group of people who agree about a certain idea; agreement
  30. entrepeneurs
    someone who does something new with resources in order to make a profit
  31. capital
    items used to produce goods and services
  32. financial capital
    money used to produce goods and services
  33. utility
    capactiy for a good or service to be useful and give satisfaction to someone
  34. price floor
    the lowest legal price that can be charged for an item
  35. monetary policy
    how the national bank manipulates the money supply and interest rates to help stabilize the economy
  36. surplus
    situation where the supply of something is greater than what is demanded
  37. shortage
    supply is less than the demand
  38. capitalist
    person in control of money
  39. black market
    market in which goods and services are sold illegally, illegal prices
  40. deficit
    amount by which a sum of money falls short of the expected or required amount; shortage
Card Set
Econ Vocab
econ vocab