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Economics Vocabulary
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Economics: The branch of knowledge concerned with the production, consumption, and transfer of wealth.
Microeconomics: Deals with behavior and decision making by small units.
Macroeconomics: Deals with the economy as a whole and decision making by large units.
Scarcity: Having limited resources with unlimited wants.
Factors of Production: Resources needed to produce goods and services.
Land: Natural resources that exist without human intervention.
Labor: Work.
Capital: Manufactured goods used to make other goods and produce other services.
Entrepreneurship: The ability of individuals to start new businesses.
Technology: Any use of land, labor, and capital that produces goods and services more efficiently.
Trade off: Exchanging one thing for another.
Opportunity Cost: The next best alternative.
Production Possibilities Curve: Model that shows the maximum combinations of goods and services that can be produced from a fixed amount of resources in a given period of time.
Economy: All the activity in a nation that together affects the production, distribution, and use of goods and services.
Economic Model: The theories that economists use in their work.
Hypothesis: An educated guess or prediction.
Economic System: The way a nation determines how to use its resources to satisfy its people's wants and needs.
Traditional Economy: Economic decisions are based on customs and beliefs.
Command Economy: Government leaders control the factors of production.
Market Economy: Capitalism, economic decisions made by individuals.
Market: The voluntary exchange of goods and services between buyers and sellers.
Circular Flow of Income and Output: Model used to show how the market system works.
Mixed Economy: Combines basic elements of a pure market economy and a command economy.
Capitalism: Market system.
Laissez faire: Pure capitalism.
Free enterprise System: Individuals are free to own and control the factors of production.
Profit: The amount left after all the costs of production have been paid.
Profit Incentive: The desire to make profit.
Competition: The rivalry among the producers of similar products to win more business by offering lower prices or better quality.
Private Property: Property that is owned by individuals or groups rather than by the government.
Economic Efficiency: The use of resources so as to maximize the production of goods and services.
Economic Equity: The outcome of an economic transaction is fair to each party.
Standard of Living: The material well-being of an individual, group, or nation.
Economic Growth: Producing increasing amounts of goods and services over the long term.
Socialism: Economic system in which there is little private property and the state owns virtually all the factors of production.
Proletariat: Workers.
Communism: An idealized system with no need for a government.
Democratic Socialism: A type of socialist system that works within the constitutional framework of a nation to elect socialists to office.
Authoritarian Socialism: Socialist system whose supporters advocate revolution as the means to overthrow capitalism and bring about socialist goals.
Consumer: Any person or group that buys or uses goods and services to satisfy personal needs and wants.
Disposable Income: The money income a person has left after all taxes have been paid.
Discretionary Income: Leftover income which can be saved or spent on extras.
Rational Choice: When consumer decisions are based on opportunity cost.
Competitive Advertising: Advertising that attempts to persuade consumers that a product is different from and better than any other.
Informative Advertising: Advertising that provides useful information about a product.
Bait and Switch: Illegal advertising technique that advertises one item at a low price, then says its unavailable or inferior in order to sell a different, more expensive, product.
Comparison Shopping: The process of getting information on the types and prices of products available from different stores or companies.
Warranty: The promise made by a manufacturer or seller to repair or replace a product if it is found to be faulty within a certain period of time.
Brand Name: A word, picture, or logo on a product that helps consumers distinguish it from similar products.
Generic Brands: No brand name at all, difficult to know who made product.
Consumerism: A movement that started in the 1960s to educate buyers about the purchases they make and to demand safer and better products from manufacturers.
Ethical Behavior: Respecting the rights of producers and sellers, expected behavior of consumers.
Credit: The receiving of funds either directly or indirectly to buy goods and services today with the promise to pay for them in the future.
Principal: The amount originally borrowed.
Interest: The amount the borrower must pay for the use of someone else's funds.
Installment Debt: Debt to be paid in equal payments over a period of time.
Durable Goods: Manufactured items that last longer than three years.
Mortgage: An installment debt owed on real property, houses, buildings, or land.
Commercial Bank: Services include offering checking and savings accounts and loans to individuals, transfer funds among banks, individuals, and businesses.
Savings and Loan Association: Accepts deposits and lends funds, many mortgage and auto loans, usually slightly less interest than commercial banks.
Savings Bank: Lend funds for home mortgages, personal, and auto loans, also able to offer services similar to checking accounts.
Credit Union: Owned and operated by its members to provide savings accounts and low-interest loans only to its members.
Finance Company: Takes over contracts for installment debts from stores and adds a fee for collecting the debt.
Charge Accounts: Allows a customer to buy goods or services from a particular company and pay for them later.
Credit Card: Allows a person to make purchases without paying cash, like a charge account.
Finance Charge: The cost of credit expressed in dollars and cents.
Annual Percentage Rate: The cost of credit expressed as a yearly percentage.
Credit Bureau: A private business hired by a lender to do a credit check.
Credit Check: Reveals income, any current debt, details about one's personal life, and how well one has repaid debts in the past.
Credit Rating: A rating of the risk involved in lending funds to a specific person or business.
Collateral: The size of your capital or personal wealth.
Secured Loan: A loan that is backed up with collateral.
Unsecured Loan: Loan lent simply on a person's reputation and promise to pay.
Usury Law: A law restricting the amount of interest that can be charged for credit.
Bankruptcy: The state of being unable to pay outstanding debts.
Saving: The setting aside of income for a period of time so that it can be used later.
Savings Account: An interest-earning account that has no set maturity.
Money Market Deposit Account: Another type of account that pays relatively high rates of interest and allows immediate access to one's funds through checks.
Time Deposits: A wide variety of savings plans that require a saver to deposit his or her funds for a certain period of time.
Maturity: The period of time the funds are deposited.
Certificates of Deposit: Savings certificates that state the amount of the deposit, length of time until maturity is reached, and the rate of interest being paid.
Stockholders: Owners of stock.
Capital Gain: The profit when a person sells stock at a higher price than he or she bought it for.
Capital Loss: The loss when a person sells stock at a lower price than he or she paid for it.
Broker: A person who acts as a go-between for buyers and sellers.
Over the counter Market: An electronic marketplace for stocks not listed on the organized exchanges.
Stock Market Indexes: Indexes based on what happened to the stock prices of various listed companies.
Mutual Fund: An investment company that pools the funds of many individuals to buy stocks, bonds, or other investments.
Money Market Fund: Normally uses investors' funds to buy the short-term debt of businesses and banks, allow investors to write checks against their account.
Pension Plans: Plan to save for retirement.
Individual Retirement Account: Retirement plan where the income you contribute to the IRA is not taxed in the year it is contributed.
Roth IRA: Retirement plan where all of the interest you earn on your contributions to it are tax-free forever.
Diversification: Spreading out your investments.
Demand: How people decide what to buy and at what price.
Supply: How people decide how much to sell and at what price.
Market: Represents the freely chosen actions between buyers and sellers of goods and services.
Voluntary Exchange: A buyer and seller exercise their economic freedom by working toward satisfactory terms of an exchange of goods or services.
Law of Demand: States that there is an inverse relationship between quantity demanded and price.
Quantity Demanded: How much people will buy of any item at a particular price.
Real Income Effect: People's incomes limit the amount they are able to spend.
Substitution Effect: When the price of one good rises in relation to the price of another, people will buy the now lower-priced good.
Utility: The power that a good or service has to satisfy a want.
Marginal Utility: Additional satisfaction.
Law of Diminishing Marginal Utility: The more of excess amounts of a specific product is bought, the less satisfied a person is with it.
Demand Schedule: A table of prices and quantity demanded.
Demand Curve: Shows the quantity demanded of a good or service at each possible price, slopes downward.
Complementary Goods: The decrease in the price of one will increase the demand for it as well as the other.
Elasticity: Price responsiveness.
Price Elasticity of Demand: How much consumers respond to a given change in price.
Elastic Demand: A rise or fall in price greatly affects the amount people are willing to buy.
Inelastic Demand: When a price change does not result in a substantial change in the quantity demanded.
Law of Supply: As the price of a good rises, the quantity supplied generally rises, and vice versa.
Quantity Supplied: The amount of product that producers wish to sell in a time period.
Supply Schedule: A table showing that as the price per product increases, the quantity that producers are willing to supply also increases.
Supply Curve: Shows the quantities that producers are willing to supply at each possible price.
Law of Diminishing Returns: Adding units of one factor of production increases total output.
Equilibrium Price: The price at which the quantity demanded and the quantity supplied meet.
Shortage: When the quantity demanded is greater than the quantity supplied.
Surplus: When the quantity demanded is less than the quantity supplied.
Price Ceiling: A government-set maximum price that can be charged for goods and services.
Rationing: Limiting of items that are in short supply.
Black Market: Market in which illegally high prices are charged for items that are in short supply.
Price Floor: A government-set minimum price that can be charged for goods and services.
Money: Anything that is used as a medium of exchange, a unit of accounting, and a store of value.
Medium of Exchange: Something that a seller will accept in exchange for a good or service.
Barter: Exchange goods and services for other goods and services.
Unit of Accounting: Something that allows people to compare the values of goods and services in relation to one another.
Store of Value: The ability to store the purchasing power that results from a sale in the form of money for later use.
Commodity Money: Mediums of exchange that have value as a commodity aside from their value as money.
Representative Money: Money backed by a valuable item such as gold or silver.
Fiat Money: Money which its face value occurs through government fiat, or order.
Legal Tender: Money that by law must be accepted for payment of public and private debts.
Overdraft Checking: Allows a customer to write a check for more money than exists in his or her account.
Electronic Funds Transfer: A system of transferring funds from one bank account directly to another without any paper money changing hands.
Automated Teller Machine: Units that let consumers do their banking without the help of a teller.
Checking Account: Consists of funds deposited in a bank that a person can withdraw at any time by writing a check.
Checkable Deposits: The funds deposited in a checking accounts.
Thrift Institutions: Mutual savings banks, savings and loan associations, and credit unions.
Debit Card: A card that automatically withdraws funds form a checkable account.
Near Moneys: Assets that are almost, but not exactly, like money.
M1: All currency, all checkable deposits, and traveler's checks.
M2: Everything in M1 plus savings deposits, small-denomination time deposits, money market deposit accounts, retail money market mutual fund balances, and other more specialized account balances.
Fed: The Federal Reserve System made up of a Board of Governors assisted by the Federal Advisory Council, the FOMC, 12 Federal Reserve district banks, 25 branch banks, and many thousand banks and thrift institutions.
Monetary Policy: Involves changing the rate of growth of the supply of money in circulation in order to affect the amount of credit, thereby affecting business activity in the economy.
Federal Open Market Committee: Meets 8 times a year to decide the course of action that the Fed should take to control the money supply.
Check Clearing: The transferring of funds from one bank to another when you write or deposit a check.
Loose Money Policy: Credit is abundant and inexpensive to obtain.
Tight Money Policy: Credit is in short supply and is expensive to obtain.
Fractional Reserve Banking: A bank retains only a portion of its customers' deposits as readily available reserves from which to satisfy demands for withdrawals.
Reserve Requirements: Requirements stating that banks must hold a certain percentage of their checkable deposits either as cash in their own vaults or as deposits in their Federal Reserve district bank.
Discount Rate: The rate of interest the Fed charges banks.
Prime Rate: The interest rate it charges its best business customers.
Federal Funds Rate: The interest rate that banks charge each other for short-term loans.
Open market Operations: A market that is open to private businesses and not controlled or owned by government.
Economics Vocabulary
Across:| 1. | Any person or group that buys or uses goods and services to satisfy personal needs and wants. | | 3. | Shows the quantities that producers are willing to supply at each possible price. | | 8. | How much consumers respond to a given change in price. | | 10. | A system of transferring funds from one bank account directly to another without any paper money changing hands. | | 12. | Money that by law must be accepted for payment of public and private debts. | | 13. | Debt to be paid in equal payments over a period of time. | | 17. | A person who acts as a go-between for buyers and sellers. | | 22. | A word, picture, or logo on a product that helps consumers distinguish it from similar products. | | 23. | When the quantity demanded is greater than the quantity supplied. | | 25. | Money which its face value occurs through government fiat, or order. | | 28. | Retirement plan where all of the interest you earn on your contributions to it are tax-free forever. |
| | 29. | How people decide how much to sell and at what price. | | 30. | Exchange goods and services for other goods and services. | | 31. | Work. | | 32. | The voluntary exchange of goods and services between buyers and sellers. | | 33. | The theories that economists use in their work. | | 34. | Natural resources that exist without human intervention. | | 35. | An installment debt owed on real property, houses, buildings, or land. | | 37. | The receiving of funds either directly or indirectly to buy goods and services today with the promise to pay for them in the future. | | 38. | The use of resources so as to maximize the production of goods and services. | | 39. | Money backed by a valuable item such as gold or silver. | | 40. | Price responsiveness. |
| | Down:| 2. | Deals with behavior and decision making by small units. | | 4. | The ability of individuals to start new businesses. | | 5. | Market in which illegally high prices are charged for items that are in short supply. | | 6. | No brand name at all, difficult to know who made product. | | 7. | Socialist system whose supporters advocate revolution as the means to overthrow capitalism and bring about socialist goals. | | 9. | A type of socialist system that works within the constitutional framework of a nation to elect socialists to office. | | 10. | The outcome of an economic transaction is fair to each party. | | 11. | A table showing that as the price per product increases, the quantity that producers are willing to supply also increases. | | 14. | Indexes based on what happened to the stock prices of various listed companies. | | 15. | Mutual savings banks, savings and loan associations, and credit unions. |
| | 16. | Requirements stating that banks must hold a certain percentage of their checkable deposits either as cash in their own vaults or as deposits in their Federal Reserve district bank. | | 18. | A market that is open to private businesses and not controlled or owned by government. | | 19. | The setting aside of income for a period of time so that it can be used later. | | 20. | Anything that is used as a medium of exchange, a unit of accounting, and a store of value. | | 21. | The profit when a person sells stock at a higher price than he or she bought it for. | | 24. | The cost of credit expressed in dollars and cents. | | 26. | Everything in M1 plus savings deposits, small-denomination time deposits, money market deposit accounts, retail money market mutual fund balances, and other more specialized account balances. | | 27. | All the activity in a nation that together affects the production, distribution, and use of goods and services. | | 36. | The Federal Reserve System made up of a Board of Governors assisted by the Federal Advisory Council, the FOMC, 12 Federal Reserve district banks, 25 branch banks, and many thousand banks and thrift institutions. |
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© 2013
PuzzleFast.com, Noncommercial Use Only
Economics Vocabulary
Across:| 1. | Any person or group that buys or uses goods and services to satisfy personal needs and wants. | | 3. | Shows the quantities that producers are willing to supply at each possible price. | | 8. | How much consumers respond to a given change in price. | | 10. | A system of transferring funds from one bank account directly to another without any paper money changing hands. | | 12. | Money that by law must be accepted for payment of public and private debts. | | 13. | Debt to be paid in equal payments over a period of time. | | 17. | A person who acts as a go-between for buyers and sellers. | | 22. | A word, picture, or logo on a product that helps consumers distinguish it from similar products. | | 23. | When the quantity demanded is greater than the quantity supplied. | | 25. | Money which its face value occurs through government fiat, or order. | | 28. | Retirement plan where all of the interest you earn on your contributions to it are tax-free forever. |
| | 29. | How people decide how much to sell and at what price. | | 30. | Exchange goods and services for other goods and services. | | 31. | Work. | | 32. | The voluntary exchange of goods and services between buyers and sellers. | | 33. | The theories that economists use in their work. | | 34. | Natural resources that exist without human intervention. | | 35. | An installment debt owed on real property, houses, buildings, or land. | | 37. | The receiving of funds either directly or indirectly to buy goods and services today with the promise to pay for them in the future. | | 38. | The use of resources so as to maximize the production of goods and services. | | 39. | Money backed by a valuable item such as gold or silver. | | 40. | Price responsiveness. |
| | Down:| 2. | Deals with behavior and decision making by small units. | | 4. | The ability of individuals to start new businesses. | | 5. | Market in which illegally high prices are charged for items that are in short supply. | | 6. | No brand name at all, difficult to know who made product. | | 7. | Socialist system whose supporters advocate revolution as the means to overthrow capitalism and bring about socialist goals. | | 9. | A type of socialist system that works within the constitutional framework of a nation to elect socialists to office. | | 10. | The outcome of an economic transaction is fair to each party. | | 11. | A table showing that as the price per product increases, the quantity that producers are willing to supply also increases. | | 14. | Indexes based on what happened to the stock prices of various listed companies. | | 15. | Mutual savings banks, savings and loan associations, and credit unions. |
| | 16. | Requirements stating that banks must hold a certain percentage of their checkable deposits either as cash in their own vaults or as deposits in their Federal Reserve district bank. | | 18. | A market that is open to private businesses and not controlled or owned by government. | | 19. | The setting aside of income for a period of time so that it can be used later. | | 20. | Anything that is used as a medium of exchange, a unit of accounting, and a store of value. | | 21. | The profit when a person sells stock at a higher price than he or she bought it for. | | 24. | The cost of credit expressed in dollars and cents. | | 26. | Everything in M1 plus savings deposits, small-denomination time deposits, money market deposit accounts, retail money market mutual fund balances, and other more specialized account balances. | | 27. | All the activity in a nation that together affects the production, distribution, and use of goods and services. | | 36. | The Federal Reserve System made up of a Board of Governors assisted by the Federal Advisory Council, the FOMC, 12 Federal Reserve district banks, 25 branch banks, and many thousand banks and thrift institutions. |
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© 2013
PuzzleFast.com, Noncommercial Use Only
