Chapter 1 Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Need
Want
Scarcity
Economics
Entrepreneur
Factors of production
Trade-off
Opportunity cost
Thinking at the margin
Cost/benefit analysis
11. Marginal cost
12. Marginal benefit
13. Production possibilities
curve
14. Production possibilities
frontier
15. Efficiency
16. Underutilization
17. Law of increasing costs
Chapter 2 Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
Economic system
Profit
Safety net
Standard of living
Traditional
economy
Specialization
Free market
economy
Factor market
9.Product market
10. Competition
11. Invisible hand
12. Centrally planned
economy
13. Command
economy
14. Socialism
15. Communism
16. Mixed economy
Chapter 3 Vocabulary








Voluntary exchange
Eminent domain
Public interest
Macroeconomics
Microeconomics
Gross domestic
product
Business cycle
patent
 Copyright
 Infrastructure
 Free
rider
 Externality
 Welfare
 In-kind benefits
 Market failure
 Work ethic
Chapter 4 Vocabulary
 Demand

 Law

of demand
 Substitution effect
 Income effect
 Demand schedule
 Demand curve
 Ceteris paribus
 Normal good






Inferior good
Complements
Substitutes
Elasticity of demand
Inelastic
Elastic
Total revenue
Market demand
schedule
Chapter 5 Vocabulary








Supply
Law of supply
Quantity supplied
Supply schedule
Variable
Supply curve
Elasticity of supply
Marginal product of
labor








Increasing marginal
returns
Diminishing marginal
returns
Fixed cost
Variable cost
Total cost
Subsidy
Marginal cost
Marginal revenue
Chapter 6 Vocabulary
 Equilibrium
 Minimum
 Disequilibrium
 Inventory
 Shortage
 Fad
 Surplus
 Search
 Price
ceiling
 Rent control
 Price floor
wage
costs
 Supply shock
 Rationing
 Black market
Chapter 7 Vocabulary








Perfect competition
Commodity
Barrier to entry
Imperfect
competition
Monopoly
Natural monopoly
Government
monopoly
franchise








Price discrimination
Market power
Monopolistic
competition
Oligopoly
Collusion
Price fixing
Merger
trust
Chapter 8 Vocabulary
 Sole
proprietorship
 Liability
 Fringe benefits
 Partnership
 Assets
 Royalties
 Corporation
 Stock








Bond
Dividend
Cooperative
Nonprofit
organization
Conglomerate
Horizontal merger
Vertical merger
Business franchise
Chapter 9 Vocabulary








Outsourcing
Learning effect
Screening effect
Contingent
employment
Derived demand
Productivity of labor
Equilibrium wage
mediation
 Semi-skilled
worker
 Glass ceiling
 Labor union
 Featherbedding
 Strike
 Blue-collar worker
 White-collar worker
 arbitration
Chapter 10 Vocabulary








Medium of
exchange
Barter
Unit of account
Store of value
Currency
Commodity money
Representative
money
specie








Fiat money
Greenback
Gold standard
Foreclosure
Liquidity
Money market
mutual fund
Default
Mortgage
Chapter 11 Vocabulary
 Investment
 Maturity
 Financial
 Yield
system
 Financial asset
 Mutual fund
 Hedge fund
 Diversification
 Portfolio
 return
 Savings
bond
 Money market
 Share
 Capital gain
 Stock split
 futures
Chapter 12 Vocabulary








Gross domestic
product
Intermediate goods
Durable goods
Nominal GDP
Rea GDP
Gross national
product
Depreciation
Price level








Aggregate supply
Aggregate demand
Business cycle
Peak
Contraction
Trough
Stagflation
depression
Chapter 13 Vocabulary








Globalization
Unemployment rate
Underemployed
Inflation
Price index
Consumer price
index
Market basket
Inflation rate
 Hyperinflation
 Fixed
income
 Deflation
 Poverty rate
 Lorenz rate
 Workfare
 Block grant
 Enterprise zone
Chapter 14 Vocabulary
 Revenue
 Progressive
tax
 Proportional tax
 Regressive tax
 Tax base
 Incidence of a tax
 Withholding
 Tax return
 Taxable
income
 Tax deduction
 Gift tax
 Tariff
 Entitlement
 Tax exempt
 Balanced budget
 Capital budget
Chapter 15 Vocabulary








Fiscal policy
Federal budget
Fiscal year
Appropriations bill
Demand side
economics
Keynesian economics
Multiplier effect
Supply side economics








Budget surplus
Budget deficit
Treasury bill
Treasury note
Treasury bond
National debt
Crowding out effect
Automatic stabilizer
Chapter 16 Vocabulary








Monetary policy
Reserves
Reserve
requirements
Check clearing
Discount rate
Money creation
Required reserve
ratio
Excess reserves








Prime rate
Monetarism
Easy money policy
Tight money policy
Inside tag
Outside tag
Open market
operations
Federal funds rate
Chapter 17 Vocabulary








Export
Import
Absolute advantage
Comparative
advantage
Trade barrier
Tariff
Sanctions
embargo
 Trade
war
 Free trade
 Exchange rate
 Appreciation
 Depreciation
 Balance of trade
 Trade surplus
 Trade deficit
Chapter 18 Vocabulary








Developed nation
Per capita GDP
Industrialization
Literacy rate
Internal financing
Stabilization program
Privatization
globalization
 Offshoring
 Remittances
 Brain
drain
 Sustainable
development
 Deforestation
 Population growth
rate