TERMS 1-100

  1. ability-to-payprinciple
    principle that states taxes ought to be paid by those who can best afford them
  2. absolute advantage
    occurs when one nation can produce an item more efficiently than another
  3. accounts payable
    the sums that a firm owes its suppliers
  4. accounts receivable
    the sums owed to a firm by its customers
  5. aggregate demand
    total planned spending by consumers, business, and government to purchase the aggregate supply
  6. aggregate supply
    all the goods and services provided by the economy
  7. annual percentage rate (APR)
    the APR is the percentage cost of credit calculated on an annual basis
  8. annual report
    report to stockholders containing pertinent financial information
  9. antitrust laws
    laws regulating the growth and use of monopolistic power or tendencies
  10. arbitration
    settling differences by allowing a third party (the arbitrator) to hand down a decision that is final and binding
  11. assembly line
    a manufacturing system in which parts are assembled by moving them from one worker or machine to another
  12. asset
    something of vaue that is owned by a firm, household, or individual
  13. automatic stabilizers
    features built into the economy that put money into the economy during periods of recession and take money out during periods of inflation
  14. balanced budget
    financial plan in which expenses exactly equal income
  15. balance of payments
    summary of the flow of international transactions; statement of payments made to all other countries and payments received from all other countries
  16. balance of trade
    the difference between the export and import of merchandise
  17. balance sheet
    financial statement summarizing a firm's assets, liabilities and net worth
  18. bandwagon advertising
    an appeal that suggests everybody is using a particular product
  19. bank
    financial institution that accepts demand deposits and makes commercial loans
  20. barter
    the exchange of one good or service for another
  21. base year
    the reference year, with a value of 10, used in the construction of index numbers
  22. bears
    speculators who anticipate a decline in the economy
  23. benefits-received principle
    principle of taxation that states those who benefit from a government program are the ones who ought to pay for it
  24. blacklist
    list of disapproved persons
  25. block grants
    lump sums given to communities by the federal government to be spent as the community deems appropriate
  26. board of directors
    elected representatives of corporate stockholders
  27. Board of Governors
    governing body of the Federal Reserve System; establishes policies for the Fed. It consists of seven persons appointed by the President for 14-year terms
  28. bond
    a certificate representing indebtedness, usually of a corporation or unit of government, to the holder
  29. boom
    the peak of the business cycle; business is producing at or near capacity
  30. boycott
    a refusal to do business with a firm involved in a labor dispute
  31. break-even point
    point at which income from sales equals fixed and variable expenses
  32. brokerage
    in the securities industry, the buying and selling of stocks and bonds on behalf of others
  33. budget
    a financial plan that summarizes income and expenditures over a period of time
  34. bulls
    spectators who anticipate an increase in the price of securities
  35. Bureau of Labor Statistics (BLS)
    the principal data-gathering agency of the federal government
  36. business cycle
    periodic fluctuation in the economy
  37. business ethics
    concern for keeping fair business practices
  38. business firm
    organization that produces goods or services
  39. business unionism
    Samuel Gomper's principle of seeking better wages and working conditions rather than political or social reform
  40. bylaws
    rules of operation for a corporation, stated in the charter, that govern the corporate officers' actions
  41. capacity
    the maximum number of units a firm can produce
  42. capital
    something created to produce other goods and services; also money used to pay for the business operations
  43. capital gain
    the increase in the value of an asset over a period of time
  44. capitalism
    an economic system based on the private ownership of the factors of production, competition, and the profit motive
  45. cash flow
    the amount of money coming into and going out of a firm
  46. caveat emptor
    Latin term that means "let the buyers beware"
  47. Cellar Antimerger Act
    a law passed by Congress in 1950 that declared mergers to be illegal where they serve to "lessen competition or tend to create a monopoly
  48. central economic planning
    doctrine placing production decisions in the hands of government planners
  49. certificates of deposit
    certificates issued by banks guaranteeing repayment of principal at a fixed rate of interest after a specified period of time
  50. chamber of commerce
    associations of business and professional people that seek to promote the interests of the business community
  51. charter
    a document issued by a state government granting a corporation permission to operate
  52. checking account
    a bank account against which the depositor can write checks
  53. checks
    written orders directing a bank to pay a person or business a specific sum of money
  54. Clayton Antitrust Act
    law passed by Congress in 1914 which specified what acts would be considered "in restraint of trade"
  55. closed (or private) corporation
    one whose stock is not sold to the public
  56. closed shop
    one in which a worker must belong to the union before they can be hired
  57. collateral
    something with monetary value pledged as security for a loan
  58. collective bargaining
    negotiations with management by a union to prepare a labor contract
  59. command economy
    an economic sustem in which major decisions concerning the allocation of resources are made by agencies of the government
  60. commercial paper
    short-term notes issued by a corporation promising to repay a sum of money at a specified rate of interest
  61. common stock
    a security that represents ownership in a corporation
  62. communism
    socialism based on the writings of Karl Marx
  63. company union
    union organized, financed, and controlled by management
  64. comparative advantage
    an advantage in producing an item because one's opportunity cost to produce it is lower than another's
  65. competition
    the rivalry among buyers and among sellers in the purchase and sale of resources of products
  66. compound interest
    interest computed on the principal and on the interest previously paid
  67. conciliation
    effort by a third party to bring labor and management together to work out their differences on their own
  68. conglomerate merger
    combination of unrelated businesses under a single management
  69. conspicuous consumption
    Thorstein Veblen's term for the tendency to buy goods and services to impress others
  70. constant dollars
    dollars that reflect changes in purchasing power from a base year
  71. consumer
    anyone who uses goods and/or services
  72. consumer co-ops
    retail businesses owned by members who share in the profits and/or purchase goods and services at lower cost
  73. consumer credit
    an agreement whereby a consumer is provided cash, goods or services now with payment spread into the future
  74. consumer price index (CPI)
    compares present prices of commonly purchased goods and service to the prices of similar goods and services in a base year
  75. contraction
    period in the business cycle after a boom when businesses begin to reduce their spending levels
  76. cooperative (co-op)
    association of individuals or companies whose purpose is to perform some business function for its members
  77. copyright
    exclusive right of authors of original writing and artistic work to sell or in any way reproduce their works for their lifetime plus fifty years
  78. corporation
    a business organization created under a government charter
  79. co-signer
    person with an acceptable credit rating who agrees to repay a loan if the borrower cannot
  80. cost-push inflation
    rising prices rise due to an increase in the cost of production
  81. craft worker
    one of a wide variety of highly skilled workers such as carpenter, tool-and-die makers, machinists, electricians and automobile mechanics
  82. credit card
    an identification card that entitles the lawful owner to make purchases on credit
  83. creditor
    one who lends money to another
  84. credit union:
    association of people with something in common that offers insured savings plans similar to those offered by other savings institutions
  85. crowding-out effect
    theory that government borrowing reduces the supply of credit for private use, pushes up interest rates, and reduces business and consumer spending
  86. currency
    paper money and coins issued by the federal government
  87. currency exchange
    buying or selling foreign currencies
  88. customs union
    an organization of countries who agree to promote free trade among member but to impose a common tariff on nonmembers. Best known is the European community or Common Market
  89. default
    failure to meet an obligation when it comes due
  90. deficit
    excess of expenses over expected income
  91. deflation
    a decrease in the general level of prices; a period during which the purchasing power of the dollar is rising
  92. demand
    a consumers willingness and ability to buy a product or service at a particular time and place
  93. demand curve
    the graphic representation of demand
  94. demand deposits
    checking accounts held by commercial banks; largest component of the money supply
  95. demand-pull inflation
    rising prices because demand is increasing faster than industry's ability to satisfy the demand
  96. demand schedule
    a table showing the quantities of a product that would be purchased at various prices at a given time
  97. democratic socialism
    socialist economic system in which the government owns and operates many, but not all, major industries
  98. deposit multiplier
    a multiple by which the deposit of funds in the banking system will increase total deposits
  99. diminishing marginal utility
    the last item consumed will be less satisfying than the one before
  100. discounted loan
    loan from which interest is deducted in advance
Card Set
TERMS 1-100
deca competency terms