accumulation The process of acquiring an item and adding that item to others previously

acquired

Aggregate demand The total (or aggregate) real expenditures on final goods and services
produced in the domestic economy that buyers would willing and able to
‫اجمالي الطلب‬
make at different price levels, during a given time period (usually a year).
Aggregate supply The total (or aggregate) real production of final goods and services available
in the domestic economy at a range of price levels, during a given time
period
amortization The process of paying off a debt liability and accrued interest through a
series of equal, periodic payments.

banks Financial intermediaries that function as depository institutions, maintaining

deposits, making loans, and directly controlling the checkable deposits
portion of the economy's money supply.

Barrier to entry An institutional, government, technological, or economic restriction on the

entry of firms into a market or industry.

Baby Boomer A citizen of the good old U. S. of A. born between the years 1946 and 1960.
These Boomers represent a relatively large segment of the population and
outnumber any other group born during a similar period, such as those born
from 1931 to 1945 or from 1961 to 1975.
bankruptcy A legal declaration that the liabilities of a proprietor (individual), partnership,
or corporation are greater than assets.

Bond The general term for a long-term loan in which a borrower agrees to pay a
lender an interest rate (usually fixed) over the length of the loan and then
repay the principal at the date of maturity.

broker Anyone who is paid to bring together buyers and sellers to complete a
market transaction

budget A statement of the financial position of an entity

Bureaucracy is a group of non-elected officials within a government or other institution

that implements the rules, laws, ideas, and functions of their institution

Capacity The amount a company or an economy can produce using its current
equipment, workers, capital and other resources at full tilt.
currency Paper usually issued by the national government that is used as money.
Deflation An extended decline in the average level of prices. This is the exact opposite
of inflation--in which prices are rising over an extended period, and it should
be contrasted with disinflation--which is a decline in the inflation rate. Like
inflation, deflation occurs when the AVERAGE price level decreases over
time. While some prices might decrease, other prices could increase or
remain unchanged, so long as the AVERAGE follows a downward trend.
Deflation is a rare bird indeed in our economy and typically happens only
when we're in a prolonged period of stagnation. We might see some
deflation during a fairly lengthy recession, but more than likely deflation
saves itself for the occasional depression that dots our economic landscape.
Demand The willingness and ability to buy a range of quantities of a good at a range
of prices, during a given time period.

economy The system of production, distribution, and consumption of goods and

services that a society uses to address the problem of scarcity. The essential
task of an economy is to transform resources into useful goods and services
(the act of production), then distribute or allocate these products to useful
ends (the act of consumption). Virtually all economies accomplish this task
through a combination of decisions made through voluntary market
exchanges and involuntary government rules and regulations.
elasticity The relative response of one variable to changes in another variable.
is the measurement of how changing one economic variable affects others.
In general, if changes in variable A cause changes in variable B, then the
relative change in B is greater than the relative change in A. In other words,
small changes in variable A cause relatively larger changes in variable B. An
elastic relationship between two variables is a very responsive, or
stretchable, relationship. You should compare elastic with inelastic.
emigration Migration that leaves one country for another country. This is the other side
of immigration. While immigration is people moving into a country,
emigration is people moving out.
Entrepreneurship is a special sort of human effort that takes on the risk of bringing labor,
capital, and land together and organizing production.

European Union The economical and political integration of a dozen European nations
created by the Maastricht Treaty signed in 1992. The twelve nations forming
the European Union (commonly abbreviated EU) are Belgium, Denmark,
Greece, Germany, Spain, France, Ireland, Italy, Luxembourg, Netherlands,
Portugal, and Great Britain.
exports The sale of goods to a foreign country.
The United States, for example, sells a lot of the stuff produced within our
boundaries to other countries, including wheat, beef, cars, furniture, and,
well, almost every variety of product you care to name. In general, domestic
producers (and their workers) are elated with the prospect of selling their
goods to foreign countries--leading to more buyers, a higher price, and more
profit. The higher price, however, is bad for domestic consumers. In that
domestic consumers tend to have far less political clout than producers, very
few criticisms of exports can be heard. On the positive side, though, exports
do tend to add to the multiplicative, cumulatively reinforcing expansion of
 production and income (that is, the multiplier).

foreign exchange rate The price of one nation's currency in terms of another nation's currency.

Growth rate The percentage change in a variable from one year to the next. The growth
rate, in effect, measures how much the variable is growing over time. In that
economists (as well as regular human people) are quite interested in
economic growth, progress, and a lessening of the scarcity problem, growth
rates for different economic variables are closely scrutinized. Among the
most important are: real gross domestic product, population, and per capita
income. Growth rates are important not only for the analysis of long-run
progress (economic growth, economic development), but also short-run
instability (business cycles)
growth The process of increasing the economy's ability to produce goods. Growth is
also one of the three macroeconomic goals of an economy
Globalization The generalized expansion of international economic activity which includes
increased international trade, growth of international investment (foreign
investment) and international migration, and increased proliferation of
technology among countries. Globalization is the increasing world-wide
integration of markets for goods, services, labor, and capital. It is an ongoing
process that started several centuries ago.
gross domestic income The total market value of all final goods and services produced within the
political boundaries of an economy during a given period of time, usually a
year,
gross national product The total market value of all goods and services produced by the citizens of
an economy during a given period of time, usually one year.
Historical cost An accounting principle stating that expenses are recorded in terms of
original or acquisition cost.
Holding Co A company (usually a corporation) that owns enough stock in another
corporation to exercise virtually complete control over its management.

import goods and services produced by the foreign sector and purchased by the
domestic economy. In other words, imports are goods purchased from other
countries.
industry A group of firms producing goods or services that are close substitutes-in-
consumption.
Inflation A persistent increase in the average price level in the economy. Inflation
occurs when the AVERAGE price level (that is, prices IN GENERAL) increases
over time.
Inelastic supply means that changes in the quantity supplied are not very responsive to
changes in the supply price.
Elastic supply is defined as the percentage change in the quantity supplied divided by the
percentage change in price.
insolvency The condition of a business when liabilities (excluding ownership equity) are
greater than Assets.
Price elasticity of quantity demanded of a good or service to a change in its price
demand

Inelastic Demand the quantity demanded by buyers doesn't change as much as the price does.
Monopoly A market structure characterized by a single seller of a unique product with no
close substitutes.
microeconomic policy Government policy aimed at individual parts of the economy, especially
industries, markets, businesses, and households. Microeconomic policy is
usually concerned with promoting the micro goals of efficiency and equity.
Common micro economy policies are judicial and regulatory.
macroeconomic policy Government policy aimed at the aggregate economy, usually to promote the
macro goals of full employment, stability, and growth. Common
macroeconomic policies are fiscal and monetary.
marginal revenue The change in total revenue resulting from a change in the quantity of output
sold.
marginal cost The change in total cost (or total variable cost) resulting from a change in the
quantity of output produced by a firm in the short run
monetary policy The Federal Reserve System's use of the money supply to stabilize the
business cycle. As the nation's central bank, the Federal Reserve System
determines the total amount of money circulating around the economy. In
principle, the Fed can use three different "tools"--open market operations, the
discount rate, and reserve requirements--to manipulate the money supply. In
practice, however, the primary tool employed is open market operations. To
counter a recession, the Fed would undertake expansionary policy, also
termed easy money. To reduce inflation, contractionary policy is the order of
the day, and goes by the name tight money.
Opec the common abbreviation for the Organization of Petroleum Exporting
Countries .Global organization includes 12 countries dependent on oil exports
to achieve their income. The abbreviated name to OPEC and OPEC members
work to increase the revenue from the sale of oil in the world market.
Member States have in this organization 40% of global output and 70% of the
world's oil reserves. Founded in Baghdad in 1960, by Saudi Arabia, Iran, Iraq,
Kuwait and Venezuela, based in Vienna.
Opportunity cost Sacrifice for the production of product for the production of a nother product
more important
is the cost of any activity measured in terms of the value of the next best
alternative forgone (that is not chosen). It is the sacrifice related to the second
best choice available to someone
Preferred stock The ownership shares in a corporation that have legal claim to the
corporation's assets. Stock is usually dividend into two types, common stock
and preferred stock. Preferred stock has first claim to the corporations net
assets, and common stock comes in second. However, if a corporation has no
preferred stock, the common stock has exclusive claim. Most stocks are
negotiable and are traded one on a stock market.
Common stock the ownership shares in a corporation that have legal claim to the
corporation's assets. Stock is usually dividend into two types, common stock
 and preferred stock. Preferred stock has first claim to the corporations net
assets, and common stock comes in second. However, if a corporation has no
preferred stock, the common stock has exclusive claim. Most stocks are
negotiable and are traded one on a stock market.
Treasury security Financial instruments or legal claims used by the federal government to
borrow money. Treasury securities are issued by the U.S. Treasury to cover the
federal government's budget deficit. They are classified as either Treasury
bills, Treasury notes, or Treasury bonds. Much like consumers who borrow
money from banks to finance the purchase of a house or car, the federal
government borrows money to finance some of its expenditures. These bonds
are widely traded and are very liquid. These securities include small
denomination ($25, $50, or $100), nonnegotiable Series EE savings bonds
purchased by consumers. The really serious money, however, is borrowed
using larger denomination securities ($100,000 or more) purchased by banks,
corporations, foreign governments, and others with large sums of funds to
lend.
is a government debt issued by the United States Department of the Treasury
through the Bureau of the Public Debt. Treasury securities are the debt
financing instruments of the United States federal government, and they are
often referred to simply as Treasuries. There are four types of marketable
treasury securities: Treasury bills, Treasury notes, Treasury bonds, and
Treasury Inflation Protected Securities (TIPS
Treasury bill One kind of government security issued by the U. S. Treasury, A marketable,
‫اوذون الخزانة‬ fixed-interest U.S. government short term debt security with a maturity for
less than one year.
Treasury notes One kind of government security issued by the U. S. Treasury ,A marketable
fixed interest U.S. government medium term debt security with a a maturity
between one and 10 years. Treasury notes can be bought either directly from
the U.S. government or through a bank
Treasury bond One kind of government security issued by the U. S. Treasury
‫سندات الخزانة‬ A marketable, fixed-interest U.S. government long term debt security with a
maturity of more than 10 years. Treasury bonds make interest payments semi-
annually and the income that holders receive is only taxed at the federal level.

Unemployment The general condition in which resources are willing and able to produce
goods and services but are not engaged in productive activities. While
unemployment is most commonly thought of in terms of labor, any of the
other factors of production (capital, land, and entrepreneurship) can be
unemployed as well. The analysis of unemployment, especially labor
unemployment, goes hand-in-hand with the study of macroeconomics that
emerged from the Great Depression of the 1930s.
occurs when people are without work and actively seeking work
Unemployment occurs when a person who is actively searching for
employment is unable to find work. Unemployment is often used as a measure
of the health of the economy. The most frequently cited measure of
unemployment is the unemployment rate. This is the number of unemployed
persons divided by the number of people in the labor force.
value added The increase in the value of a good at each stage of the production process.
The value that's being increased is specifically the ability of a good to satisfy
wants and needs either directly as a consumption good or indirectly as a
capital good. A good that provides greater satisfaction has greater value. In
essence, the whole purpose of production is to transform raw materials and
natural resources that have relatively little value into goods and services that
have greater value.

Recession A significant decline in activity across the economy, lasting longer than a few
months. It is visible in industrial production, employment, real income and
wholesale-retail trade. The technical indicator of a recession is two
consecutive quarters of negative economic growth as measured by a country's
gross domestic product (GDP); although the National Bureau of Economic
Research (NBER) does not necessarily need to see this occur to call a recession
Variable cost In general, cost those changes with changes in the quantity of output
produced. More specifically, variable cost is combined with the adjectives
"total" and "average" to indicate the overall level of variable cost or the per
unit variable cost. Variable cost depends on the amount of produced. If there
is no production, then there is no variable cost.
zero coupon bond lso termed a zero bond, a bond that does not pay interest, in which the return
is generated by the difference between the purchase price and the face value
paid at maturity. Because they do not pay interest, zero coupon bonds are
sold at a discount. For example, a $10,000 zero coupon bond that matures in
one year, would generate a 10% return if it sold at a discount of $9,000.