Economics Unit 1/2

4. Rate: The price of a country's money in relation to another country's money.
6. line: In a free market is the belief that everyone should have an equal opportunity to become wealthy by investing in and supporting entrepreneurship and employment.
7. Referred as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.
8. Referred as an statistical value of a data set that represents 20% of a given population
9. costs: The costs incurred from a company manufacturing a product or providing a service.
11. Income: Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.
12. A situation where there is a single seller in the market.
14. Income Tax: A tax levied on the wages, salaries, dividends, interest, and other income a person earns throughout the year. The tax is generally imposed by the state in which the income is earned.

1. The use of machines and technology to make processes run on their own without manpower
2. An increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates.
3. Stage: A period in which real GDP is declining. Also associated with declining inflation rates and increasing unemployment rates. Trough - point at which a contractionary phase ends and an expansionary phase begins
4. Stage: It is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak
5. A sustained period of weak or negative growth in real GDP (output) that is accompanied by a significant rise in the unemployment rate.
10. Defined as a situation where someone of working age is not able to get a job but would like to be in full-time employment.
13. Curve: A graphical representation of the distribution of income or wealth within a population