Ch 2 Economic Vocabulary

Legislation – Laws passed to regulate producers
What do price ceilings create – Shortages
payroll taxes – taxes withheld from paychecks and sent to the government by employers
Economic System – Way in which a nation uses its resources to satisfy its people's needs and wants
Oligopoly – market structure in which a few sellers dominate and have the ability to affect prices in the industry; form of imperfect competition.
Factors of Production – land – rent
labour – wages
capital – interest
entrepreneurship – profit
Blue collar work – Work which is often based on skills and is paid by the hour.
The reason for bank consolidation is:
What are Tangible – Wants anything that is able to be felt by touch.
Current account deficit issues – Paid for by borrowing money from overseas or overseas investment, in the long run problems with this are: loan repayment issues, higher interest rates attracting foreign investment, foreign capital leaves. Good issues: greater choice for consumers (due to increased imports).
Specific Tax – a fixed amount that is imposed upon a product by the government; it has the effect of shifting the supply curve vertically upwards by the amount of the tax.
Price floor – A minimum price set by the government
needs – water, clothing, food, air, shelter
The reаsоn fоr bаnk cоnsolidаtion is:
Labour market demand determinants – -derived
-wage rate (NMW)
opportunity cost – the cost of the things you gave up
Expansionary Fiscal Policy – designed to expand GDP
land – all occurring natural resources
Net Exports – spending on domestically produced goods by foreigners minus spending on foreign goods by domestic residents

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