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vocabulary terms for Manry Money Masters
Terms in this set (180)
A particular talent or acquired skill
Resources which are in relatively large supply. See Scarce Resources.
1. the money available to the client of a bank.2. the location in the bank (name or number) where the money is stored.
Informing consumers about a good or service, particularly by praising it.
A message that lets the consumer know about goods or services abusiness or person has to offer. Provides information about the good orservice which the producer wishes to be known.
The increase in value of an asset.
An arrangement where a product is assembled by having each worker perform one specialized task as the product passes by on a moving belt.See Specialization.
Anything an individual or corporation owns.
Automated Teller Machine
Someone who checks the accounts of a business or organization.
A business which stores money (in checking and savings accounts),exchanges and lends money.
The exchange of goods and services for other goods and services without the use of money.
A market in which the prices of securities are falling or expected to fall.
Anything that is helpful or advantageous.
A person who records money received and spent by an organization or business.
To use money belonging to another person (or financial institution),usually by agreeing to pay interest for the use of the money.
A plan for the use of time, money or resources.
A market in which the prices of securities are rising or expected to rise.
An organization that buys and of hires resources to produce a goodand/or service with the intention of making a profit for the owners.
1. Factor of Production; 2. Man-made resource, used in the production of goods and services; includes factoriesequipment, machinery, etc.; 3.
used to produce final goods and services. Also called Capital Goods.Note: Real Capital includes only real tangible objectsnever stocks,bonds or money. Financial capital is the money used by firms topurchase real capital. It is probably better to deal only with real capital in beggining economics
Tools, machinery, buildings, etc., used to produce final goods or services. See Capital.
Goods made by people and used to produce other goods and services(also called intermediate goods)
An economic system based on private ownership of property orproductive resources (which owners may use to produce goods orservices and receive the profits or losses from their use.) This system is characterized by competition the Profit incentive and free markets.
currency, or the equivalent (a check).
The full price one pays for a good or service, if one pays with cash. See Credit Price.
A written order to a bank to pay a certain amount of money from a person's account to a business or some other person.
A card that allows the owner to make transactions from his or her checking account.
A booklet for recording transactions made to a checking account.
A bank account which is available on demand; the owner of the accountwrites a check which is treated like currency in the market.
A method of collecting information for consideration or action.
The process of deciding between two or more alternatives; deciding how our scarce resources are going to be used; which wants and needs will besatisfied. Example: Do we produce guns or butter; TV sets or video games?
A model of an economy showing the interactions between householdsand business firms as they exchange goods and services and resources in markets.
A worker who performs office duties or waits on sales customers.
1. One of the components (parts) of the money supply.2. A piece of metal stamped with a design and issued to the public to beused as money.
A sum or percentage paid to an agent for his or her services;
To examine for similarities and differences.
Rivalry among producers of the same (or similar) goods and services toprovide that good or service to meet the needs of consumers. Rivalry may take the form of lower prices higher quality, product differentiationor advertising and packaging. Example: Auto companies may choosenot to change prices or quality to compete with each other but may choose instead to advertise more extensively or make dramatic styling changes.
A market in which there are many buyers and sellers, no barriers to entry,and a homogeneous product.
A person or firm which competes with others.
Interest paid upon money deposited in an account and also on all theinterest already earned by the deposit. (See also simple interest.)
Wise use of natural resources.
To buy and/or use goods or services.
A person who buys and makes final use of goods and services. Example:a person who eats a hamburger or watches a TV.
The quality of being easy, useful or of increasing comfort.
1. The price of a good or service (money cost); 2. The value of goodsand service which are given up in order to purchase (or produce) aparticular good or service (opportunity cost). 3. The value of goods andservices used to produce an output (cost of production).
Obtaining money,goods or services with a nominal initial payment(down payment) and the promise to pay in the future usually with some additional amount (interest) added to pay for the use of the money.
Card issued by a business or a bank that allows one to have credit with that business or (if it is a bank card) with many businesses.
The full price one pays for a good or service if one buys it on credit;equal to the Cash Price plus interest.
A cooperative group that holds savings and makes loans to its members.Typically the loans are small consumer loans at an interest rate lowerthan the market rate.
Standards used in making a decision.
1. A component (part) of the money supply;2. Paper bills issued by the government to be used as money.
The level of service provided to satisfy customers.
A set of questions asking for customer responses to determine theirsatisfaction with products or services.
A set of steps that identify the problem, list alternatives, state criteria,evaluate alternatives and reach a decision.
A plastic card that allows for electronic transactions that immediately debits money from a bank account.
Money or goods that are owed to a person or business.
A persistent fall in the general level of prices.
The quantities of a good, service, or resource which consumers arewilling and able to buy at a particular time at all relevant prices. Usuallyexpressed as a table (demand schedule) or as a graph (demand curve) ofquantities or a good or service demanded at different prices.Note 1: Economists differentiate between Demand and QuantityDemanded. Demand is based upon the tastes,expectations, and incomesof consumers the number of consumers in the market and the prices ofrelated goods. A change in any of these will cause a shift in demand sothat at each price a greater (lesser) quantity will be demanded (than was true before). If price changes you move along the curve to a greater(lesser) quantity demanded. 2. Demand is the whole curve; Quantity Demanded is one point on that curve associated with a particular price.
Component (part) of the money supply. A deposit in a financial institution which may be withdrawn or transferred to another person upon demand by writing a check. (See Checking Account)
To put money in a bank account.
Also called deposit slip - A written record of money put in a bank account.
The decrease in value of an asset.
Income received by households, after personal income tax is deducted.
The part of the productive process in which a good is transported togeographical locations where it can be used to satisfy the wants and needs of consumers.
One who is involved in the process of distribution of goods and services from producer to consumer. See Distribution.
Division of Labor
1. The separation of a productive process (making a cake) into various tasks (measuring pouring, stirring, tending the oven, frosting) to be performed by different workers.2. Specialization and division of labor usually result in increased output.See Specialization.
Goods with a long useful life. Example: automobiles, stoves, furniture.Note: Economists usually use this term for "big ticket" items not for the other less expensive items such as CD's. CD's may have a very long life but are inexpensive and may easily be thrown out when you get tired of them.
Not wasteful (particularly of resources or money).
The way a society organizes the production, consumption and distribution of goods and services.
The study of how people make choices about the best use of scarce economic resource.
Making the best possible use of scarce resources; producing the largest output at the least cost.
Somebody who is paid by someone else to do work.
A person or business that hires and pays one or more workers.
To sign your name on the back of a check.
A person who starts or manages a business to produce goods or services in hopes of making a profit.
The price of a good or service at which the quantity demanded by buyers
the quantity supplied by sellers.
Rules for right or good behavior or actions.
Trading a good or service for another good or service, or money; may beaccomplished with or without money. See Barter.
The cost of converting one country's currency for that of another country's currency.
Federal Deposit Insurance Corporation. Government agency which guarantees the repayment (to the depositor) of money deposited in the bank.
Payments made to the owners of the Factors of Production; Wages (to Labor); Rent (to owners of Land or Capital Goods); Interest (to those who have loaned the money to buy capital goods or land) and Profit (to the owners of business).
Factor of Production
Any resource needed to produce goods and services. Factors of production are usually classified into the broad categories of land(natural resources) labor (human resources), capital (capital resources),and entrepreneurial ability (management).
Federal Reserve Bank
A public agency that acts as a bank for other banks by holding a banks deposits and lending a bank money.
Payment for professional services.
Final Goods and Services
Goods and services sold to persons who will consume them.
The exposure of a firm's (or an individual's) assets or money to the possibility of loss by undertaking a business venture.
See carrying charge.
A business engaged in borrowing, holding, and/or lending money.
A diagram that shows a step-by-step progression through a process or system
The practice of giving companies the freedom to trade and make a profit without government control.
1. Good for which the market price is zero at a particular time and place.A good is a "free good" because it is not scarce relative to the demand for it.2. A good for which quantity supplied exceeds quantity demanded at a zero price. EXAMPLE: Air. Air is important to us but since there isso much of it we do not have to pay for it. If we pollute the air we may have to pay for the scarce clean air.
Functions of Money
Uses of money.The functions of money are:1. medium of exchange can be used to buy goods and services.2. measure of value - how much a good or service is worth is usually measured in dollars.3. store of value a convenient (liquid) way to store our wealth.
The purpose of saving (not consuming) now is to have money for consumption at a later date. EXAMPLE: saving for a summer vacation trip or retirement.
Tangible objects (food, automobiles, shoes) capable of satisfying human wants.
1. The form or system of rule by which a nation, state, or city is governed 2. The group of persons whose job it is to run the affairs of the state 2. The group of persons whose job it is to run the affairs of the state nation etc. Government usually exists at 3 levels Federal, State and Local, each will typically perform a different function.
The quantity and quality of human effort directed toward producing goods and services (also called labor)
1. Money received by household in return for the use of the resources which they (households) own; 2. Money earned by the factors of Production. This is in the form of wages rent, interest, and profit.
Tax paid to government by households; the amount is some percentage of the income earned by the household. The federal government and some state governments collect income tax.
Individual Retirement Account (IRA)
A retirement plan that allows employed individuals to delay paying taxes on money invested.
A general increase in the price of goods and services. May be caused by an increase in production costs or increases in demand for goods and services.
Property or money received from an estate, or through a will.
Resources (land, labor, or capital used to produce a good or service.Also called Factor input or Factor of Production.
Protection against the risk of large losses; purchased by paying are latively small premium (price). Types of insurance are auto,homeowners,life, health, etc. to protect against costs associated with losses such as auto accidents damage to homes, loss of life or ill health.
Two or more persons, regions, or countries which are dependent on each other to supply goods and services to satisfy their wants and needs.Example: Wisconsin specializes in the production of cheese and Florida specializes in the production of oranges. Since neither state wants to exist solely on its own output they trade and become interdependent.
Goods, which will be further, processed for resale. Example: sheet steel and glass are intermediate goods purchased by an auto company and processed further into a car.
Amount paid for the use of money: 1. The cost of borrowing money(including the use of credit cards); 2. Amount paid by banks to savers for the use of their money; usually expressed as a percentage.EXAMPLES: interest on the unpaid balance of a credit card or bank loan-money earned from a bank for keeping money in a savings account.
A record of a business's current assests.
Physical and mental efforts of people for which they are usually paid.Factor of production:workers hired by a business, whose efforts aredirected toward production of goods or services. In exchange for their efforts workers are paid a wage or salary.
Factor of Production: includes real estate (earth) and all natural resources such as mineral deposits water, and timber.
A contract for the use of a product.
See scarce resources.
Ability to change something of value into cash easily and quickly.
Negative difference between cost and sale price. See profit.
1. process of organizing and utilizing resources to produce goods and services. 2. the group (or individual) in a firm that does the organizing of resources to produce goods and services.
Any situation in which buyers can meet to exchange goods and services for other goods and services with or without the use of money.
An economic system where most goods and services are exchanged through private transactions by private households and businesses.Prices are determined by buyers and sellers making exchanges in private markets.
Facility where coins are produced.
Anything which is generally acceptable in exchange for goods andservices. Note: The United States government says that coins, currency,and checking accounts are the basic money supply. A broader definitionof money includes savings accounts and government bonds which canreadily be converted into cash. See Functions of Money Money Supply.
One seller. A market structure where one firm or individual controls the entire supply of a good or service for which there are no close substitutes.
A loan secured by real estate (land or buildings.) EXAMPLE: If I borrow money to buy a house the bank holds the deed to the house until I pay back the loan.
One firm supplying the entire output, consumers pay less than if the output. EXAMPLE: Electric power is generated more efficiently by one large company therefore, we consider electric power to be a naturalmonopoly. We allow the monopoly to exist but the government regulates it.
Products of the earth (not man made) used in the production of goods and services. EXAMPLE: Coal water and timber.
Desire felt by consumers for basic necessities of life food, clothing, and shelter. See wants.
After deductions. Net income is the amount earned after taxes and social security are taken out or deducted.
Amount of money deposited in the checking account minus any cash received.
Goods which have a short useful life (socks, light bulbs) or satisfy consumer's wants by being used up ( a hamburger)
A business or organization whose main purpose is to serve people, not to earn a profit.
Those natural resources such as oil, coal, or iron, which do not replenish themselves; once used they are gone forever.
The ability to use a computer to access and make transactions regarding one's bank account.
1. The cost of using a resource to satisfy a particular human want;measured in terms of the alternative good or service which was not produced. EXAMPLE: You spent the afternoon at the beach. You have used your scarce resource (time) to satisfy your desire for leisure. The opportunity cost of this choice is the money you would have earned if you had mowed the neighbor's lawn instead.2. The value of the next best alternative.
the quantity or amount produced with a given input.
The check an employer pays an employee for work performed.
A market structure characterized by: 1. Many buyers and sellers;2. Homogeneous products; 3. Freedom of entry and exit (no barriers to entry). See competition.
A sign-up for people to agree to donate to a charity.
1. Amount of money which must be paid for a good or service;2. "money value" of a good or service.
The interest rate that banks charge their prime or most creditworthy customers
Property (things) owned by one person or a group of people (my shirt,our house). The right of individuals to own and control private property and enjoy the benefits of that property; unless it infringes on the rights of others. The right to Private Property established by the Constitution is the basis for Capitalism.
A person or firm who makes (or supplies) a good or service.
Tangible, man-made objects or services, used to satisfy the wants of the consumer. See Goods or Commodities.
Process of combining resources (land, labor, and capital) to make goods and services.
The ratio of output (goods and services) produced per unit of input (productive resources) over a period of time.
1. Source of Income: positive difference between total cost and total revenue. (If the difference is negative, it is a loss)2. Difference between selling price and cost of production.
A tax which increases with the income of the taxpayer. EXAMPLE:U.S. Income Tax gets higher both as an amount and as a percentage, as income rises).
A signed agreement promising payment of a sum of money at a paarticular time.
1. Something tangible which one owns;2. land or real estate.
Payments from households and business to local governments, the amount of which is based on the value of the real property owned by the households and businesses.
Public Goods & Services
Goods and services provided by the government. See Social Goods.
Property (things) owned together by all people for everyone's use.EXAMPLE: schools,parks, libraries.
Degree of excellence (of a product).
A business that tries to meet its customers' needs and wants through a process of continuous improvement and teamwork.
Amount of a product.
Unprocessed natural products used in the production of final goods and services. EXAMPLE: Iron ore is one of the raw materials from which automobiles are made.
A tax which falls more heavily on persons with low incomes.EXAMPLE: Sales tax. People with low incomes pay a higher percentage of that income in sales taxes than do those with high incomes because they spend all their income. Those with higher incomes can save some of their income.
Natural resources which are not used up in consumption (solar energy, wind or wave power) or which reproduce themselves wholly or in part (timber).
1. Money payments for the use of a house, land or some other property;2. Payment to those who supply the Factor of Production Land.3. Return to a fixed factor of production.
All natural, human and human-made aids used in the production of goods and services. See Natural Resources Human Resources, Capital Resources, Factors of Production and Substitute Resources.
The state of being no longer involved in performing one's business or profession usually one retires because one has reached some predetermined age often 65 years old.
A situation in which two or more producers seek to gain a larger market share by providing consumers with lower prices higher quality, or a differentiated product. See Competition.
Criteria that tell what a quality product or process looks like.
To give up something of value often for the sake of something else.
Safe Deposit Box
A safe place at the bank that can be rented for storage.
A fixed wage paid periodically for regular work. EXAMPLE: My salary is $100 per week. See Wages.
Taxes paid by individuals to government when goods and services are purchased. The business collects the tax which is a percentage of the sales price and delivers the tax to the government. (State and local governments usually collect sales tax).
Opposite of spend.
The portion of income (after tax) that is not spent for consumer goods or services.
An account in a financial institution where a person deposits that part of his or her income which he or she chooses not to spend at the present time; banks usually pay interest on money in savings accounts.
Savings & Loan Institutions
Similar to a bank but has as its primary function storing money in savings accounts and lending money for the purchase of homes (home mortgages).
Resources (used to produce goods and services) which are in short supply realative to unlimited human wants
1. Short supply (particularly of resources) relative to human wants, which are unlimited. 2. The basic economic condition arising because resources are limited and human wants are not.
Resources are limited because people have so many wants and needs.Therefore we have to make choices. EXAMPLE: Shall we use our limited supply of oil for gasoline (transportation) or for producing heat for homes and power for factories?
The amount of money the buyer pays and the seller receives for a good or service.
An addition to a cost for the privilege of purchasing a good or service on credit. Also calles a service fee.
Productive acts of labor (intangibles) which do not result in a tangible product but which satisfy consumer wants or needs. Intangibles which are bought and sold to satisfy a consumer's wants or needs. EXAMPLE:teaching,cleaning teeth, cutting hair.
Dividing up work among people so that each person does one job or task
The act of employing people for a company.
Goods that are substitutes for each other to satisfy human wants.Example: Coca-Cola, PepsiNote: Whether or not goods or services are substitutes for each other depends on individual tastes and values. Margarine and butter are substitutes for some people but not for Julia Child!
The act of using one good or resource in place of another to satisfy human wants and needs; may occur when the price of one good or resourses rises due to scarcity
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Study Guide #2
A) "poor" country because such a nation has difficulty devoting many resources to the production of capital goods.
a network of savers, investors, and financial institutions that work together to transfer savings to investment uses
If the demand for milk increases at the same time that the supply of milk decreases, supply and demand analysis predicts that:
Refer to Figure 6-1. The price ceiling shown in panel (a)