trades (exports) it to obtain the other product. tragedy of the commons The tendency for commonly owned to be overused, neglected, or degraded because natural resources their common ownership gives nobody an incentive to maintain or improve them. transactions demand for money The amount of money people want to hold for use as a (to make payments); medium of exchange varies directly with nominal GDP. transfer payment A payment of (or goods and services) money by a government to a or for which the payer receives household firm no good or service directly in return. trough The point in a at which business activity has business cycle reached a temporary minimum; the point at which a has recession ended and an expansion (recovery) begins. tying contract A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act. unanticipated inflation Increases in the price level (inflation) at a rate greater than expected. underemployment A situation in which workers are employed in positions requiring less education and skill than they have. undistributed corporate profits After-tax corporate profits not distributed as dividends to stockholders; corporate or business saving; also called retained earnings. unemployment The failure to use all available economic resources to produce desired goods and services; the failure of the economy to fully employ its labor force. unemployment compensation (See unemployment insurance). unemployment insurance The social insurance program that in the United States is financed by state on employers payroll taxes and makes income available to workers who become unemployed and are unable to find jobs. unemployment rate The percentage of the unemployed labor force at any time. unfulfilled expectations Situations in which households and businesses were expecting one thing to happen but instead find that something else has happened; unrealized anticipations or plans relating to future economic conditions and outcomes. uninsurable risk An event that would result in a loss and whose occurrence is uncontrollable and unpredictable. Insurance companies are not willing to sell insurance against such a loss. union (See labor union.) The percentage of a particular population of unionization rate workers that belongs to alternatively, the percentage labor unions; of the population of workers whom unions represent in collective bargaining.
trades (exports) it to obtain the other product. tragedy of the commons The tendency for commonly owned natural resources to be overused, neglected, or degraded because their common ownership gives nobody an incentive to maintain or improve them. transactions demand for money The amount of money people want to hold for use as a medium of exchange (to make payments); varies directly with nominal GDP. transfer payment A payment of money (or goods and services) by a government to a household or firm for which the payer receives no good or service directly in return. trough The point in a business cycle at which business activity has reached a temporary minimum; the point at which a recession has ended and an expansion (recovery) begins. tying contract A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act. unanticipated inflation Increases in the price level (inflation) at a rate greater than expected. underemployment A situation in which workers are employed in positions requiring less education and skill than they have. undistributed corporate profits After-tax corporate profits not distributed as dividends to stockholders; corporate or business saving; also called retained earnings. unemployment The failure to use all available economic resources to produce desired goods and services; the failure of the economy to fully employ its labor force. unemployment compensation (See unemployment insurance). unemployment insurance The social insurance program that in the United States is financed by state payroll taxes on employers and makes income available to workers who become unemployed and are unable to find jobs. unemployment rate The percentage of the labor force unemployed at any time. unfulfilled expectations Situations in which households and businesses were expecting one thing to happen but instead find that something else has happened; unrealized anticipations or plans relating to future economic conditions and outcomes. uninsurable risk An event that would result in a loss and whose occurrence is uncontrollable and unpredictable. Insurance companies are not willing to sell insurance against such a loss. union (See labor union.) unionization rate The percentage of a particular population of workers that belongs to labor unions; alternatively, the percentage of the population of workers whom unions represent in collective bargaining.
honors_textbook_glossary.docx