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30 Cards in this Set

  • Front
  • Back
Fiscal Policy
Government efforts to keep the economy stable by increasing or decreasing taxes or government spending.
That part of economic study that looks at the operation of a nation's economy as a whole.
Producer Price Index (PPI)
An index that measures prices at the wholesale level.
Resource Development
The study of how to increase resources and to create the conditions that will make better use of those resources.
National Debt
The result of a series of government deficits (when the government spends more money than it collects in taxes) over time.
Invisible Hand
A phrase coined by Adam SMith to describe the process that turns self-directed gain into social and economic benefits for all.
A market in which there is only one seller.
That part of economic study that looks at the behavior of people and organizations in particular markets.
Monetary Policy
The management of the money supply and interest rates.
The study of how society chooses to employ resources to produce goods and services and distribute them for consumption amoung verious competing groups and individuals.
Consumer Price Index (CPI)
Monthly statistics that measure changes in the prices of about 400 goods and services that consumers buy.
The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.
A severe recession.
An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.
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.
Two or more consecutive quarters of decline in the GDP.
Command Economies
Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow.
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.
Gross Domestic Product (GDP)
The total value of goods and services produced in a country in a given year.
Market Price
The price determined by supply and demand.
Unemployment Rate
The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.
The quantity of products that people are willng to buy at different prices at a specific time.
Free-market Economies
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.
Mixed Economies
Economic systems in which some allocation of resources is made by the market and some is made by the government.
A form of competition in which the market is dominated by just a few sellers.
An economic and political system in which the state makes all economic decisions and owns all the major forms of production.
A condition where price increases are slowing (the inflation rate is declining).
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.
A general rise in the prices of goods and services over time.
A situation where prices are actually declining.