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31 Cards in this Set
- Front
- Back
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Define ECONOMICS:
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The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
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Define MACROECONOMICS:
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The part of economic study that looks at the operation of a nation's economy as a whole.
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Define MICROECONOMICS:
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That part of economic study that looks at the behavior of people and organizations in particular markets.
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Define RESOURCE DEVELOPMENT:
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The study of how to increase resources and to create the conditions that will make better use of those resources.
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Who was the Father of Economics?
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Adam Smith, an early economics pioneer who envisioned a system for creating wealth, and improving the lives of everyone.
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Define the phrase INVISIBLE HAND:
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Phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.
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Define CAPITALISM:
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An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.
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Define SUPPLY:
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The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.
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Define DEMAND:
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The quantity of products that people are willing to buy at different prices at a specific time.
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Define MARKET PRICE:
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The price determined by supply and demand.
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What is PERFECT COMPETITION?
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The market situation in which there are many sellers of nearly identical products and no seller is large enough to dictate the price of the product.
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What is MONOPOLISTIC COMPETITION?
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The market situation in which there are a large number of sellers that produce similar products, but the products are perceived by buyers as different.
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What is OLIGOPOLY?
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A form of competition in which the market is dominated by just a few sellers.
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What is a MONOPOLY?
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A market in which there is only one seller.
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What is SOCIALISM:
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An economic system based on the premise that most basic businesses should be owned by the government so that profits can be evenly distributed among the people.
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Define COMMUNISM:
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An economic and political system in which the state makes all economic decisions and owns all the major forms of production.
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Define FREE-MARKET ECONOMY:
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Economic systems in which decisions about what to produce and in what quantities are decided by the market, that is, by buyers and sellers negotiating prices for goods and services.
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What is a COMMAND ECONOMY?
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Economic systems in which the government largely decides what goods and services will be producted, who will get them, and how the economy will grow.
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Define MIXED ECONOMY:
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Economic systems in which some allocation of resources is made by the market and some is mad by the government.
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Define GROSS DOMESTIC PRODUCT (GDP):
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The total value of goods and service produced in a country in a given year.
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Define UNEMPLOYMENT RATE:
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The number of civilians at least 16 years old who are unemployed adn tried to find a job within the prior four weeks.
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Define CONSUMER PRICE INDEX (CPI):
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Monthly statistics that measure changes in the prices of about 400 goods and services that consumers buy.
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Define PRODUCER PRICE INDEX (PPI):
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An index that measures prices at the wholesale level.
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Define INFLATION:
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A general rise in prices of goods and services over a period of time.
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Define DISINFLATION:
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A condition where price increases are slowing - the inflation rate is slowing.
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Define RECESSSION:
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Two or more consecutive quarters of decline in the GDP.
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Define DEPRESSION:
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A severe recession.
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Define MONETARY POLICY:
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The management of money supply and interest rates.
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Define FISCAL POLICY:
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Government efforts to keep the economy stable by increasing or decreasing taxes or government spending.
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What is NATIONAL DEBT?
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The result of a series of government deficits (when the government spends more money than it collects in taxes) over time.
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Name the 3 ECONOMIC INDICATIORS:
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1. Gross Domestic Product (GDP), 2. Consumer Price Index (CPI), and 3. Producer Price Index (PPI)
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