Vocaulary 2

1. LIABILITIES- a companys legal debts or obligations that can be settled over time through economic benifits 2. OVERHEAD EXPENSE- miscillaneous expenses such as tax and insurance, part of the total cost of staffing and maintaining a buisness. 3. OWNERS EQUITY- difference between assets and liability 4. PRODUCTION COST- what it cost to produce the items 5. WORKING CAPITAL- a measure of the companys efficiency and short term financial health 6. LOAN- give money or property, etc. for future payment in return 7. LOSS LEADER- when a company sells a product that loses them money for the sake of offering another product for greater profit 8. SCARCITY- limited resources for peoples wants 9. OPPORTUNITY COSTS- benifits you could have recieved by taking another course of action 10. EXPLICIT COSTS- expense that is identified and accounted for, you can easily see cash outflow and profit 11. IMPLICIT COSTS- cost not easily accounted for, excluding cash..hardwork, ect are examples 12. PRICE- how much somethingg costs 13. RELATIVE PRICE- the ratio of two prices 14. INCENTIVES- encouragement to do something 15. PROFIT- a gain in money 16. LOSS- loss of money 17. EQUILIBRIUM- balance 18. SURPLUS- having extra 19. SHORTAGE- not having enough 20. MINIMUM WAGE- lowest price an employee can work for 21. PRICE FLOOR- lowest price the government allows an item to be sold for 22. BEAR MARKET- market condition in which the price of securities are falling 23. BULL MARKET- market of a group in which the prices of securities is rising 24. BOOM- when sales increase very rapidly 25. BILL OF EXCHANGE- A non-interest-bearing written order used primarily in international trade that binds one party to pay a fixed sum of money to another party at a predetermined future date. 26. BUDGET DEFICIT- amount of money spent over income 27. CAPITAL- financial resources available for use 28. SHORT SELL- selling of a stock you dont own in hopes of buying it for a lower price than you sold it for 29. SHORT COVER- buying the same number and type of securities that were short sold in order to make a profit