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31 Cards in this Set

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  • Back
Define ECONOMICS:
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.
Define MACROECONOMICS:
The part of economic study that looks at the operation of a nation's economy as a whole.
Define MICROECONOMICS:
That part of economic study that looks at the behavior of people and organizations in particular markets.
Define RESOURCE DEVELOPMENT:
The study of how to increase resources and to create the conditions that will make better use of those resources.
Who was the Father of Economics?
Adam Smith, an early economics pioneer who envisioned a system for creating wealth, and improving the lives of everyone.
Define the phrase INVISIBLE HAND:
Phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.
Define CAPITALISM:
An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.
Define SUPPLY:
The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.
Define DEMAND:
The quantity of products that people are willing to buy at different prices at a specific time.
Define MARKET PRICE:
The price determined by supply and demand.
What is PERFECT COMPETITION?
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.
What is MONOPOLISTIC COMPETITION?
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.
What is OLIGOPOLY?
A form of competition in which the market is dominated by just a few sellers.
What is a MONOPOLY?
A market in which there is only one seller.
What is SOCIALISM:
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.
Define COMMUNISM:
An economic and political system in which the state makes all economic decisions and owns all the major forms of production.
Define FREE-MARKET ECONOMY:
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.
What is a COMMAND ECONOMY?
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.
Define MIXED ECONOMY:
Economic systems in which some allocation of resources is made by the market and some is mad by the government.
Define GROSS DOMESTIC PRODUCT (GDP):
The total value of goods and service produced in a country in a given year.
Define UNEMPLOYMENT RATE:
The number of civilians at least 16 years old who are unemployed adn tried to find a job within the prior four weeks.
Define CONSUMER PRICE INDEX (CPI):
Monthly statistics that measure changes in the prices of about 400 goods and services that consumers buy.
Define PRODUCER PRICE INDEX (PPI):
An index that measures prices at the wholesale level.
Define INFLATION:
A general rise in prices of goods and services over a period of time.
Define DISINFLATION:
A condition where price increases are slowing - the inflation rate is slowing.
Define RECESSSION:
Two or more consecutive quarters of decline in the GDP.
Define DEPRESSION:
A severe recession.
Define MONETARY POLICY:
The management of money supply and interest rates.
Define FISCAL POLICY:
Government efforts to keep the economy stable by increasing or decreasing taxes or government spending.
What is NATIONAL DEBT?
The result of a series of government deficits (when the government spends more money than it collects in taxes) over time.
Name the 3 ECONOMIC INDICATIORS:
1. Gross Domestic Product (GDP), 2. Consumer Price Index (CPI), and 3. Producer Price Index (PPI)