T
table:A simplified way of showing numbers.
tariff:A tax on imports.
technology:The body of knowledge that is used for the production of goods and services.
theory:A simplified description of reality.
tight monetary policy:A policy of the Federal Reserve that causes the money supply to decrease.
total product:All the units of a product produced in a given period of time, such as one year.
total revenue:The amount of money a company receives from sale of a product.
trade barriers:Methods of restricting trade between countries.
trade deficit:The result when a country imports more than it exports.
trade-offs:Decisions among alternatives in allocating economic resources.
trade surplus:The result when a country exports more than it imports.
traditional economy:An economy in which the three economic questions are decided mainly by social customs.
transaction demand for money:The demand for money to make exchanges.
transfer payments:Public expenditures made for reasons other than paying for goods and services.
U
unemployment:The condition of those who are willing and able to work and are actively seeking work, yet who are
not currently working.
unemployment rate:The percentage of the civilian labor force that is considered unemployed.
union shop:A business that requires workers to join a union shortly after taking the job.
unlimited liability:The concept that an owner’s personal assets can be used to pay bills of the proprietorship or
partnership.
unlimited wants and needs:The human characteristic of never feeling that all wants and needs have been satisfied.
util:The unit of measure for utility.
utility:The satisfaction one receives from the consumption, use, or ownership of a good or service.
V
vertical merger:A merger of two companies that are at different stages in the same production process.
CliffsAP Economics Micro & Macro
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