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Ownership shares of a corporation are called stocks
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Stockholders elect a board of directors to act on their behalf.
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Stockholders have limited liability, meaning that they are not responsible for the debts of the corporation.
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Financial capital is the money needed to run a business or enable it to grow larger.

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Some workers join labor unions in order to have a better chance to obtain higher pay and better working conditions.
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In a modified union shop, workers do not have to join a union, but can choose to do so.
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Mediation is when a third party tries to help the union and the company reach an agreement.

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Collective bargaining is when union and company officials meet to discuss the terms of the workers’ new contract.
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The civilian labor force is the term for all civilians 16 years old or older who are either working or looking for work.
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The unemployment rate is the percentage of the civilian labor force who are not working but are looking for jobs.

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Antitrust laws are designed to control monopoly power and to preserve and promote competition.
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A natural monopoly occurs when the costs of production are minimized by having one firm produce the product.

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The real GDP shows an economy’s production after the distortions of price increases have been removed.
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An economic expansion occurs when real GDP goes up.
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Inflation is a sustained increase in the general level of prices.

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A budget is the blueprint of how the government will raise and spend money.
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A budget resolution is a document that totals revenues and spending for the year and sets targets for how much will be spent in various categories.

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Private goods are goods that when consumed by one individual, cannot be consumed by another.
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When two or more companies form a single business, a merger has taken place.
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The alternating periods of economic growth and decline make up the business cycle.

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When a government spends less than it receives in revenues, it has a budget surplus.
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When a government spends more than it receives in revenues, it has a budget deficit.
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When the governments spending equals its revenues, you have a balanced budget.

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The FDIC is the federal corporation that insures individual accounts in financial institutions.
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The Federal Reserve System is our nation’s central bank.
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A fiscal year is a 12-month period that may or may not match the calendar year.

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Debt is the money that has been borrowed but not yet repaid.
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States subsidize, or pay part of the costs of, a college education for resident students.

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Social Security is a government program that provides money to people who are retired or disabled.
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Payroll taxes are deducted from a worker’s paycheck to fund Social Security and Medicare.