AP Economics Summer Assignment

Aggregate

a sum, mass, or assemblage of particulars; a total or gross amount

Labor Union

an organization of wage earners or salaried employees for mutual aid and protection and for dealing collectively with employers

Bond

a certificate of debt issued in order to raise funds. It carries a fixed rate of interest and is repayable with or without security at a specified future date

Laissez-faire

the theory or system of government that upholds the autonomous character of the economic order, believing that government should intervene as little as possible in the direction of economic affairs

Capitalism

economic system based on private ownership of the means of production, in which personal profit can be acquired through investment of capital and employment of labor

Capital

the wealth, whether in money or property, owned or employed in business by an individual, firm, corporation, etc.

Long run

happening or presented over a long period of time or having a long course of performances

Command Economy

a socialist economic system in which production and distribution of goods and services are controlled by the government and industry is mostly publicly owned.

Macroeconomics

the branch of economics dealing with the broad and general aspects of an economy, as the relationship between the income and investments of a country as a whole

Consumer Goods

goods that are ready for consumption in satisfaction of human wants, as clothing or food, and are not utilized in any further production

Market

trade or traffic, especially as regards a particular commodity

Corporation

an association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members

Microeconomics

the branch of economics dealing with particular aspects of an economy, as the price-cost relationship of a firm.

Currency

something that is used as a medium of exchange; money

Minimum Wage

the lowest wage payable to employees in general or to designated employees as fixed by law or by union agreement

Debt

something that is owed, such as money, goods, or services

Mixed Economy

an economy in which there are elements of both public and private enterprise

Demand

the desire to purchase, coupled with the power to do so

Monetary Policy

An attempt to achieve broad economic goals by the regulation of the supply of money

Depression

an economic condition characterized by substantial and protracted unemployment, low output and investment

Opportunity Cost

the money or other benefits lost when pursuing a particular course of action instead of a mutually-exclusive alternative

Economic System

the system of production and distribution and consumption

Output

the quantity or amount produced, as in a given time

Economics

the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind

Poverty Rate

the rate at which people are at or below the poverty line

Exchange Rate

the rate at which the currency unit of one country may be exchanged for that of another

Price Level

an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time

Export

to ship (commodities) to other countries or places for sale, exchange, etc.

Private Sector

the area of the nation's economy under private rather than governmental control

Federal Reserve

the central bank of the United States; incorporates 12 Federal Reserve branch banks and all national banks and state-chartered commercial banks and some trust companies; "the Fed seeks to control the United States economy by raising and lowering short-term interest rates and the money supply

Productivity

the quality, state, or fact of being able to generate, create, enhance, or bring forth goods and services

Fiscal Policy

The policy of a government in controlling its own expenditures and taxation, which together make up the budget

Public Sector

the area of the nation's affairs under governmental rather than private control

Full Employment

a state in which the labor force and other economic resources of a country are utilized to their maximum

Recession

a period of an economic contraction, sometimes limited in scope or duration

GDP

gross domestic product

Resources

Usually, resources. money, or any property that can be converted into money; assets

GNP

gross national product

Revenue

the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses

Import

to bring in (merchandise, commodities, workers, etc.) from a foreign country for use, sale, processing, reexport, or services

Saving

a reduction or lessening of expenditure or outlay

Income

the monetary payment received for goods or services, or from other sources, as rents or investments

Short Run

happening or presented for a short period of time

Inflation

a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency

Shortage

a deficiency in quantity

Input

the act or process of putting in

Specialization

to train in or devote oneself to a particular area of study, occupation

Interest Rate

The usual way of calculating interest, as a percentage of the sum borrowed

Stagflation

an inflationary period accompanied by rising unemployment and lack of growth in consumer demand and business activity

Investment

the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value

Labor

the body of persons engaged in such activity, especially those working for wages