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Erin Randle 9/12/2011 Eco Vocab

Profit Motive: Chance of generating a surplus of revenue over all costs the reason most people start and stay in a business

Freedom Of Consumers: It describes itself as dedicated to protecting consumer choices and promoting common sense, and defending the right of adults and parents to choose how they live their lives, what they eat and drink, how they manage their finances, and how they enjoy themselves.

Responsive Prices: Price responsive demand is the ability of consumers to control their energy expenditures by changing their electricity use in response to wholesale electricity prices.

Human Capital: Health ,Knowledge, Motivation ,and skills, the attainment of which is regarded as an end in itself. Value: The worth of all the benefits and rights arising from ownership. Inflation: A sustained, rapid increase in prices, as measured by some broad index over months or years, and mirrored in the correspondingly decreasing purchasing power of the currency.
Inelastic Demand: A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price

Marginal Revenue: Increase in the gross revenue of a firm produced by selling one additional unit of output. Corporate Income Tax: Many countries impose corporate tax or company tax on the income or capital of some types of legal entities.

Progressive: Stance more activist than that of a liberal but less than that of a radical.

Voluntary Exchange: The free exchange of goods and services between buyers and seller in some sort of marketplace.

Freedom Of Producers:

Supply: The total amount of a product (good or service) available for purchase at any specified.

Comparative Advantages: Concept in economics that a country should specialize in producing and exporting only those goods and services which it can produce more efficiently than other goods and services.

Opportunity Cost :A benefit, profit, or value of something that must be given up to acquire or achieve something else.

Consumers: The Consumer is the one who consumes the goods and services produced.

Capitalism: Economics system based on private ownership of the factors of production employed in generation of profits.

Fixed cost: A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent, salaries, and wages.

Price Ceiling: Limit beyond which a cost will not be allowed to rise.

Estate Tax: Charge assessed on a propertys fair market value and payable after the owners death.,

Regressive Tax: Taxation that makes a larger percentage of a lower-income and smaller percentage of higher income. Private Property Rights: Tangible and intangible things owned by individuals or firm over which their owners have exclusive and absolute legal rights, such as land, buildings, money, copyrights, patents, etc.

Demand: Desire for certain good or service supported by the capacity to purchase it.

Scarcity: Ever-present situation in all markets whereby either less goods are available than the demand for them, or only too little money is available to their potential buyers for making the purchase.

Capital goods: Heavy equipment which require a relatively large investment, and are bought to be used over several years.

Service: A valuable action, deed, or effort performed to satisfy a need or to fulfill a demand.

Elastic Demand: Demand that increases or decreases at the price of an item goes down or up.

Total Cost: The addition of all costs-direct and indirect, (2) how much an investor paid to acquire an investment.

Price Floor: Limit beyond which a cost will not be allowed to fall.

Excise Tax: Alternative term for excise duty.

Sales tax: Ad valorem tax levied on sale of goods or services.

Deficit Spending: Alternative term for deficit financing.

Monetary Policy: Economic strategy chosen by a government in deciding expansion or contraction in the countrys money-supply.

Fiscal Policy: Governments revenue and spending policy designed to counter economic cycles in order to achieve lower unemployment.

Protective Tariff: A tariff imposed to protect domestic firms from import competition.

Stocks: The capital stock of a business entity represents the original paid into or invested in the business by its founders.

Entitlement: Distribution or exercise of an absolute privilege or right to an economic benefit granted by contract or law, automatically upon meeting the required qualification.

Supply Side Policy: These are government economic policies that change aggregate supply in an attempt to bring stability to an economy.

Trade Deficit: Excess of a nations imports of goods over its export of goods during a financial year , resulting in a negative balance of trade.

Price: A value that will purchase a definite quantity , weight , or other measure of a good or service.

Commodity: A reasonably homogeneous good or material, bought and sold freely as an article of commerce.

GNP: (Gross National Product) GDP of a country to which income from abroad remittances of nationals living outside and income from foreign subsidiaries of local firms has been added.

Demand Side Policy: policies designed to affect aggregate demand: fiscal policy and monetary policy.

Tariff: General: Published list of fares, freight charges, prices, rates, etc.