Chapter Two Terms

• traditional economy
• command economy
• market economy
• market
• self-interest
• incentive
• mixed economy
• authoritarian socialism
• communism
• capitalism
• democratic socialism
• free enterprise
• private property
• contract
• competition
• product market
• resource market
• income
• full employment
• price stability
• standard of living
  
  

  Chapter Three Terms

  • demand
  • quantity demanded
  • law of demand
  • purchasing power
  • income effect
  • substitution effect
  • diminishing marginal utility
  • demand schedule
  • determinant of demand
  • substitute good
  • complimentary good
  • elasticity of demand
  • elastic demand
  • inelastic demand
  • total revenue

  Chapter Four Terms

  • supply
  • quantity supplied
  • law of supply
  • profit
  • cost of production
  • supply schedule
  • supply curve
  • elasticity of supply
  • elastic supply
  • inelastic supply
  • determinant of supply
  • tax
  • subsidy
  • regulation
  • total product
  • marginal product
  • law of diminishing returns
  • fixed cost
  • depreciation
  • overhead
  • variable cost
  • total cost
  • marginal cost

  Chapter Five Terms

  • market failure
  • externality
  • public good
  • market equilibrium
  • surplus
  • shortage
  • price ceiling
  • price floor
  • minimum wage
  • rationing
  • black market

  Chapter Six Terms

  • perfect competition
  • buyer
  • seller
  • monopoly
  • monopolistic competition
  • differentiate
  • product differentiation
  • nonprice competition
  • oligopoly
  • interdependent pricing
  • price leadership
  • price war
  • collusion
  • cartel
  • natural monopoly
  • economies of scale
  • geographic monopoly
  • technological monopoly
  • patent
  • copyright
  • government monopoly
  • trust
  • laissez-faire
  • antitrust legislation
  • price discrimination

  Chapter Seven Terms

  • sole proprietorship
  • zoning law
  • liability
  • collateral
  • longevity
  • partnership
  • general partnership
  • limited partnership
  • corporation
  • articles of incorporation
  • corporate charter
  • board of directors
  • stock
  • share
  • dividend
  • common stock
  • preferred stock
  • corporate bond
  • pricipal
  • interest

  Chapter Ten Terms

  • national income accounting
  • gross domestic product
  • output-expenditure model
  • personal consumption expenditure
  • gross investment
  • nominal GDP
  • real GDP
  • price index
  • underground economy
  • gross national product
  • business cycle
  • expansion
  • peak
  • contraction
  • recession
  • depression
  • trough
  • leading indicators
  • coincident indicators
  • lagging indicators
  • real GDP per capita
  • labor productivity
  • productivity growth
  • capital-to-labor ratio
  • capital deepening

  Chapter Eleven Terms

  • unemployment rate
  • marginally attached worker
  • discouraged worker
  • underemployed
  • frictional unemployment
  • structural unemployment
  • seasonal unemployment
  • cyclical unemployment
  • aggregate supply
  • aggregate demand
  • inflation
  • deflation
  • demand-pull inflation
  • cost-push inflation
  • supply shock
  • wage-price spiral
  • consumer price index
  • market basket
  • producer price index
  • inflation rate
  • hyperinflation
  • poverty threshold
  • poverty rate
  • Lorenz Curve
  • Gini index

  Chapter Twelve Terms

  • privatization
  • transfer payment
  • interest group
  • lobbyist

  Chapter Fourteen Terms

  • pyramided reserves
  • check clearing
  • money supply
  • monetary policy
  • easy-money policy
  • tight-money policy
  • discount rate
  • prime rate
  • reserve requirement
  • margin requirement
  • moral suasion

  Chapter Fifteen Terms

  • fiscal policy
  • tax rate
  • excise tax
  • estate tax
  • gift tax
  • customs duty
  • supply-side economics
  • demand-side economics
  • tax incentive
  • investment tax credit
  • restrictive fiscal policy
  • expansionary fiscal policy
  • federal budget
  • fiscal year
  • budget deficit
  • budget surplus
  • deflict spending
  • national debt
  • debt ceiling

  Chapter Eighteen Terms

  • absolute advantage
  • comparative advantage
  • foreign exchange market
  • foreign exchange rate
  • adjustable-peg system
  • devaluation
  • appreciation
  • floating exchange rates
  • balance of payments
  • balance of trade
  • trade surplus
  • trade deficit
  • trade barrier
  • revenue tariff
  • protective tariff
  • import quota
  • voluntary trade restriction
  • embargo
  • free trade
  • protectionism