Chapter 1 vocab Career and Financial Management

Term Definition
Land Natural resources present
Elastic demand Demand that increases or decreases as the price of an item goes down or up
capital Wealth in the form of money or assets
Factors of production the inputs that are used in the production of goods or services in order to make an economic profit.
Fungible being of such nature or kind as to be freely exchangeable or replaceable,
Price ceiling maximum price for a good or service set by a regulating body
non-depository institution organization (such as building society, insurance company, investment trust, or mutual fund or unit trust) that serves as an intermediary between savers and borrowers, but does not accept time deposits.
labor productive activity, especially for the sake of economic gain.
eQUILIBRIUM POINT The specific point where demand matches supply at the same price.
demand a consumer's desire and willingness to pay a price for a specific good or service.
financial market A financial market is a market in which people trade financial securities, commodities, and value at low transaction costs and at prices that reflect supply and demand.
Scarcity Scarcity (also called paucity) is the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources. It states that society has insufficient productive resources to fulfill all human wants and needs.
Bartering exchange (goods or services) for other goods or services without using money.
traditional economy a traditional economy is built upon traditions, customs, and beliefs, let's look at some other factors that contribute to this type of economy. Traditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering.
economics the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind.
supply the quantity of a commodity that is in the market and available for purchase or that is available for purchase at a particular price.
incentive something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity.
depository institution a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers.
non-depository institution Government or private organization (such as building society, insurance company, investment trust, or mutual fund or unit trust) that serves as an intermediary between savers and borrowers, but does not accept time deposits.

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