Vocabulary

1. OVERHEAD EXPENSE-The indirect costs or the costs not directly related to the manufacture of a product or delivery of a service that range from rent to administrative costs to marketing costs
2. OWNERS EQUITY-Total assets minus the total liabilities of a company or individual.
3. PRODUCTION COST-combined costs of raw material and labor gained in producing goods
4. WORKING CAPITAL-A measure of a company's efficiency and its short-term financial health.
5. LOAN-money lent at interest.


6. LOSS LEADER-Good or service advertised and sold below cost price.


7. SCARCITY-shortage of amount or supply.


8. OPPORTUNITY COSTS-The cost of an alternative that must be passed up in order to pursue a certain action.
9. EXPLICIT COSTS-A business expense easily identified.


10. IMPLICIT COSTS-A cost that is represented by a lost opportunity.


11. PRICE-the amount of money or its equivalent for which anything is bought, sold, or offered for sale.
12. RELATIVE PRICE-the ratio of two prices or the price of a good or service in terms of another.


13. INCENTIVES-motivation


14. PROFIT-financial benefit that is gained from financial activity


15. LOSS-the act of losing


16. EQUILIBRIUM-a state of balance


17. SURPLUS-the amount that remains when use is satisfied.


18. SHORTAGE-a lack in the amount needed


19. MINIMUM WAGE-the smallest amount that a person can be paid allowed by federal law.


20. PRICE FLOOR-floor below which prices are not allowed to fall


21. BEAR MARKET-a period in which prices fall


22. BULL MARKET-a period in which prices are rising or expected to rise.


23. BOOM- to develop rapidly


24. BILL OF EXCHANGE-A non-interest- bearing written order used primarily in international trade that binds one party to another
25. BUDGET DEFICIT- when they have more money going out then coming in


26. CAPITAL-cash generated by investing in a business


27. SHORT SELL-


28. SHORT COVER- repurchase a previously sold contract