1. 4. A bond represents a loan made by an investor to a borrower.
  2. 6. A fallacy of subjective interpretation and perception of a situation. A mistaken mentality that one person's gain must be another's loss (three words).
  3. 7. A more severe economic decline that lasts for several years.
  4. 10. A sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise. It also means that the monetary value of currency decreases.
  5. 11. The money that people and businesses pay to support the activities of the government.
  6. 13. Paying or trading for goods or services with other goods or services, instead of using money.
  7. 17. the process of a company increasing production of goods or services through acquisition of business (two words)
  8. 20. An economic system in which the central government directs all major economic decisions.
  9. 23. A business that controls so much of an industry that little or no competition exists
  10. 25. A sum of money granted by the government, using public money to assist in payment of an industry or business.
  11. 29. When a few businesses dominate a particular industry, eliminating other competition.
  12. 32. An economic system providing free choice and individual incentive for workers, investors, consumers, and business enterprises.
  13. 33. used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested. Also called law of diminishing returns or principle of diminishing marginal productivity (two words).
  14. 34. An economic system in which the government owns the means of production, distributes the products and wages, and provides social services.
  15. 35. The opposite of market equilibrium, a lack of equilibrium or stability, especially in relation to supply, demand, and prices.
  16. 36. A strategy whereby a company owns or controls its suppliers, distributors and retail locations of the supply chain. The process of a company operating the stages of production that is normally operated by separate businesses (two words).
  1. 1. A measure of a country’s economic performance, it is the sum of all goods and services produced in a nation in a year (three words).
  2. 2. A proportionate saving in costs gained by an increased level of production (three words).
  3. 3. A benefit, profit, or value of something that must be given up to acquire or achieve something else (two words).
  4. 5. A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization (two words).
  5. 8. The percentage of money member banks must keep in Federal Reserve Banks as a reserve against their deposits (two words).
  6. 9. A tax placed a particular class of imports or exports to protect domestic markets.
  7. 12. A government’s use of spending and taxation to influence the economy (two words).
  8. 14. Is a measure of a variable's sensitivity to a change in another variable, most commonly this sensitivity is the change in price relative to changes in other factors.
  9. 15. An economic principle that each country should produce those goods it can make more efficiently and trade for other goods (two words).
  10. 16. The process by which a government takes control of industry
  11. 18. Anything that prevents an entrepreneur from instantaneously creating a new firm or business in a market (three words).
  12. 19. A government’s control of the supply of money and credit to influence the economy (two words).
  13. 21. An economy in which the government both supports and regulates private enterprise.
  14. 22. An economic system which allows buyers and sellers to act on their individual interests to determine economic activities
  15. 24. A condition that exists because society does not have all the resources to produce all the goods and services that everyone wants
  16. 26. the combination of economic variables that are in balance. Example: When supply and demand are in balance, at the equilibrium price, the quantity that buyers are willing to buy exactly matches the quantity that sellers are willing to sell. So everybody is satisfied.
  17. 27. The study of human efforts to satisfy seemingly unlimited wants through the use of limited resources.
  18. 28. The policy, or belief that an economy functions best when there is little to no interference by government, and to let markets take their own course. The principle that the less government is involved in the economy, business will be better off, and by extension, society as a whole without government bureaucracy regulations (two words).
  19. 30. Widespread economic decline that lasts for at least six months.
  20. 31. The rate charged by a lender of money or credit to a borrower (two words).