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39 Cards in this Set

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  • Back
  • 3rd side (hint)
Free Enterprise
A system of business in which individuals decide what to produce, how to produce it and what price to sell it at.
A system of business
The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through facilities available on the internet.
The organized effort of
The organized effort of individuals to produce and sell, for a profit the goods and services within a society or within an industry.
To sell within an industry
Individuals who purchase goods or services for their own personal use.
Personal use
What remains after all business expenses have been deducted from sales revenue.
What remains after
The study of how wealth is created and distributed.
The study of
The system through which a society answers the two economic questions - how wealth is created and distributed.
Society answers 2 questions
Factors of Production
The resources used to produce goods and services
The resources used
A person who risks time, effort and money to start and operate a business
A person who
An economic system in which individuals own and operate the majority of businesses that provide goods and services
An economic system in which
Market Economy (Free Market Economy)
An economic system in which businesses and individuals make the decisions about what to produce and what to buy and the market determines how much is sold and at what price
Businesses and individuals make the decisions
Mixed Economy
An economy that exhibits elements of both capitalism and socialism
Elements of both
Consumer Products
Goods and services purchased by individuals for personal consumption
Personal Consumption
Command Economy
An economic system in which the government decides what will be produced, how it will be produced, who gets what is produced and the prices of what is produced
Government decides
The average level of output per worker per hour
Gross Domestic Product (GDP)
The total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period.
occurs during a one year period
A general rise in the level of prices
a rise
Business Cycle
The recurrence of periods of growth and recession in a nations economic activity
periods of growth
Two consecutive three month periods of decline in a country's gross domestic product.
two three month periods
A severe recession that lasts longer then a recession
Lasts longer
Monetary Policies
Federal reserve's decisions that determine the size of the supply of money in the nation and the level of interest rates
Federal reserve's decisions
Fiscal Policy
Government influence on the amount of savings and expenditures, accomplished by altering the tax structure and by changing the levels of government spending.
Government influence on the amount of
Federal Deficit
A shortfall created when the federal government spends more in a fiscal year then it receives.
A shortfall
National Debt
The total of all federal deficits
A total
A rivalry among businesses for sales to potential customers
A rivalry
Pure Competition
The market situation in which there are many buyers and sellers of a product and no single buyer or seller is powerful enough to affect the price of the product.
Market situation with many buyers
The quantity of a product that producers are willing to sell at each of various prices
Qty of a product, willing to sell
The quantity of a product that buyers are willing to purchase at each of various prices
Willing to purchase
Market price
The price at which the quantity demanded is exactly equal to the quantity supplied
Qty demanded equal to qty supplied
Monopolistic Competition
A market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors.
Many buyers, large number of sellers
Product Differentiation
The process of developing and promoting differences between one's products and all similar products
Developing and promoting differences
A market situation (or industry) in which there are few sellers
Few sellers
A market (or industry) with only one seller.
One seller
Natural Monopoly
An industry requiring huge investments in capital and within which duplication of facilities would be wasteful and thus not in the public interest.
Huge investments in capital
A system of exchanges in which goods or services are traded directly for other goods and/or services without using money.
The trade of goods or services
Domestic System
A method of manufacturing in which an entreprenuer distributed raw materials to various homes where families would process them into finished goods to be offered for sale by the merchant entreprenuer.
Distribution of raw materials to various homes
Factory System
A system of manufacturing in which all the materials, machinery and workers required to manufacture a product are all assembled in one place
All in one place
The seperation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals.
Seperation of manufacturing process
Standard of Living
A loose, subjective measure of how well-off an individual or a society is, mainly in terms of want satisfaction through goods and services.
How well-off an indiviudal or society is