Economics Part 1 - Quiz date: ______ Introduction Vocabulary Part 1 of 2 with definitions

Directions: On this sheet, copy the definitions from the SMART Board as we review them in class. Use a separate sheet of paper if necessary. These words are due on the day of the Part 2 Quiz.

1) aggregate - total goods supplied or total goods demanded in the US in a given year 2) barter - the practice of trading one item for another 3) bond - a written agreement promising payment of invested money, plus interest, by a certain date 4) boom - a time of great economic growth 5) budget - a plan for getting and spending money 6) capital - Any human-made resource that is used to create other goods and services 7) capitalism - a type of economy in which individuals or businesses make most of their own economic decision 8) check - a signed paper that asks a bank to take money from an account and give it to someone else 9) competition - a contest or rivalry among sellers in which they try to get consumers to buy their products 10) consumer - a person who buys and uses products 11) corporation - a kind of company whose ownership is divided into shares of stock 12) credit - A loan; the ability to borrow 13) currency - Paper money (dollars) and coins

14) debt - An amount owed to someone else 15) deficit - when expenses exceed income 16) demand - The total amount of a product that people are willing and able to buy 17) depression - a severe decline in economic activity 18) dividends - payments to stockholders, usually based on a corporations profits 19) Dow Jones Industrial Average - the value of the stocks of the nations 30 largest industrial corporations 20) durable goods - Consumer products that will last a minimum of four years 21) economist - Someone who studies and tries to solve problems having to do with the economy 22) economics - Everything having to do with a nations money, businesses, and jobs 23) embargo - a government order forbidding trade of a certain item 24) expenditure - government spending 25) export - to sell to another country 26) Federal Reserve System - The part of the government that keeps an eye on the money supply of the US; the central bank of the US 27) fixed income - Earnings that remain fairly steady over time 28) goods - merchandise for sale

29) gross domestic product - the total market value of all goods and services produced by a nation in one year 30) hyperinflation - an extreme overall rise in prices 31) import - to buy from another country 32) index - a measure or indicator 33) inflation - a period of rising prices 34) interest - the additional amount a person pays on money he or she has borrowed 35) labor force - the total number of employed workers in a nation