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Business Vocabulary in Use
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Business Vocabulary in Use
0 Economics Glossary
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Economics Glossary (There is no self-test with this glossary) Bonds=A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Capitalism=Economic system in which property is privately owned and goods are privately produced.It is sometimes referred to as the private enterprise system. Commerce=Trade between states or nations. Competition=Rivalry among individuals in order to acquire more of something that is scarce. Consumer=A person who buys economic goods and services Credit=The giving of goods and services in return for the promise of payment at a future time. The payment usually has interest attached. Currency=Paper money issued by the government. Deposit=To put money in a bank or other financial institution. Depression=A time of economic crisis or bad times in commerce, finance, and industry, characterized by falling prices, restriction of credit, low output and investment, many bankruptcies, and a high level of unemployment (many people without jobs). A less severe crisis is usually known as a recession Distribution=The supplying of goods and services to retailers and others so that people's needs can be met. Dividend=Profits of a firm that are distributed or given out to its investors (stockholders). Economics=The study of choice and decision-making in a world with limited resources. Export=To send and/or sell goods and services outside of one's country. Goods=Anything that anyone wants. All options or alternatives are goods. Import=To bring in and/or buy goods and services from another country. Income=The amount of money one earns. This can be through one's job or through investments, etc.. Industry=The manufacturing (making) and selling of a particular type of good or service - for example the auto industry. Inflation=Increase in the overall level of prices over an extended period of time. Interdependent=People and/or businesses depending on or helping each other. Invest=To commit (money or capital) in order to gain a financial return - to put one's money into a business or project to make more money. Macroeconomics=The study of the sum total of economic activity, dealing with the issues of growth, inflation0 and unemployment and with national economic policies relating to these issues. Manufacture=To make or process (a raw material) into a finished product, especially by means of a large-scale industrial operation. Market=A network in which buyers and sellers interact to exchange goods and services for money. Microeconomics=The study of the individual parts of the economy, the household and the firm, how prices are determined and how prices determine the production, distribution and use of goods and services. Minimum Wage=A wage below which employers may not legally pay employees for specific kinds of employment. Money=The accepted common medium of exchange for goods and services in the marketplace that functions as the unit of account, a means of deferred payment and a store of value. Monopoly=A market with only one supplier. Need=A specific quantity of a specific good for which an individual would pay any price. These are the goods and services a person must have. Price=The amount of money, or other goods, that you have to give up to buy a good or service. Product=Something produced or made by human or mechanical effort or by a natural process. In business, products are things or items to be bought and/or sold. Profit=The excess of income over all costs, including the interest cost of the wealth invested. This means making money after one has paid all the expenses in a business. Recession=A time of less business activity, usually lasting at least three quarters of the year or nine months. Resource=An available supply of something that can be used. There are natural resources, human resources, etc.. Scarcity=Insufficient supply or amount of something needed, a shortage or goods or services that are needed. Services=The performance of any duties or work for another; helpful or professional activity Stock=A certificate establishing ownership of a stated number of shares in a corporation's stock. If one owns stock, one owns a part of a company. Supply and Demand=Supply is the amount of goods available at a given price at any time. Demand is how many consumers desire the goods that are in supply. Surplus=A term used when the quantity of a good supplied exceeds the quantity demanded at the existing price. Tariff=A tax on imports. Tax=A contribution for the support of a government required of persons, groups, or businesses. There are many different kinds of taxes including income, sales, state. local, federal taxes. Trade=The business of buying and selling goods and services. Union=Often referred to as a labor union. Groups of workers that come together to work for better wages and better working conditions for its members. Wages=The payment for work or services to workers - the money people are paid at their jobs. Wall Street=The controlling financial interests of the United States. Wall Street itself is located in New York City.
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