Economics

Profit= Selling price-Cost of production

Value added= SP-CP

TC(cop)=FC(rent)+VC

TR= P*Q

P=TR-TC

TR>TC= PROFIT / TR<TC= LOSS

TR-TC= BREAKEVEN

AC= TC/N

AD= C+I+G+X

Entrepreneurs
The people who have enterprise and can control and can manage firms.
1 of 25
Sole trader
May have more than one employee but it is always owned and controlled by only one person.
2 of 25
Partnership
An agreement or declaration between individuals who agree to jointly own or run an enterprise.
3 of 25
Dividend
The profit paid out on each share.
4 of 25
Shareholders
The people who buys the shares
5 of 25
Trade union
Exist primarily to promote and protect the interests of their members.
6 of 25
Industrial action
Overtime ban, Work to rule, Go slow, Sit in, Strike
7 of 25
Financial institutions
Business organizations that specialize in providing services such as borrow money, make investments, exchange the money.
8 of 25
Market capitalization
The total value of a corporations issued shares.
9 of 25
The role of a central bank
Sole right, Gov's banker, Nation gold & foreign currency, National debt, Lender of the last resort, Interest rate, Supervise banking system.
10 of 25
Extension of demand
The way in which demand changes with a fall in price.
11 of 25
Contraction of demand
The way in which demand changes when price rises.
12 of 25
Increase in demand
Consumers demand more of a product.
13 of 25
Monopoly
A firm or group of firms that has the power to restrict competition and influence the price in their favour.
14 of 25
Fiscal policy
Involves changing the level of public spending or taxation to affect the level of aggregate demand.
15 of 25
Expansionary fiscal policy
An expansionary fiscal policy usually means running budget deficit.
16 of 25
Progressive tax
Where the proportion of income taken in taxation rises as incomes rise.
17 of 25
Regressive tax
Takes a smaller proportion of income in tax as income rises.
18 of 25
Proportional tax
Where the proportion of income taken in tax is the same whatever the level of income.
19 of 25
Value Added Tax
Tax on goods and services levied as a percentage of their selling price.
20 of 25
Tariff
Tax levied on the price of goods imported from overseas as they enter a country.
21 of 25
Budget deficit
Gov spending is more than it receives in tax revenue.
22 of 25
Inflation
A general, sustained rise in the level of prices of goods and services.
23 of 25
Deflation
A sustained fall in the general level of prices in an economy.
24 of 25
Gross Domestic Product
Total value of output produced by all domestic firms in the country.
25 of 25

Other cards in this set

Card 2

Front

May have more than one employee but it is always owned and controlled by only one person.

Back

Sole trader

Card 3

Front

An agreement or declaration between individuals who agree to jointly own or run an enterprise.

Back

Preview of the back of card 3

Card 4

Front

The profit paid out on each share.

Back

Preview of the back of card 4

Card 5

Front

The people who buys the shares

Back

Preview of the back of card 5
View more cards

Comments

No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Definitions resources »