Bus 1101 Chap 2

Front 1

Study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals

Back 1

Economics

Front 2

Part of economic study that looks at the operation of a ntaion's economy as a whole

Back 2

Macroeconomics

Front 3

Part of economic study that looks at the behavior of people and organizations in particular markets

Back 3

Microeconomics

Front 4

Study of how to increase resources and to create conditons that will better use of those resources

Back 4

Resource Development

Front 5

Phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all

Back 5

Invisible Hand

Front 6

Economic system where all or most of the factors of production and distribution are privately owned and operated for profit

Back 6

Capitalism

Front 7

Quality of products that manufacturers or owners are willing to sell at different prices at a specific time

Back 7

Supply

Front 8

Quality of products that people are willing to buy at different prices at a specific time

Back 8

Demand

Front 9

Price determined by supply and demand

Back 9

Market Price

Front 10

Market situation where many sellers in a market and not seller is large enough to dictate the price of a product

Back 10

Perfect Competition

Front 11

Market situation where a large number of sellers produce products that are similar but are perceived by buyers as different

Back 11

Monopolistic Competition

Front 12

Form of competition where a few sellers dominate the market

Back 12

Oligopoly

Front 13

Market where only one seller for a product or service

Back 13

Monopoly

Front 14

Economic system base on the premise that some basic business should be owned by the government so that profits can be evenly distributed among the people

Back 14

Socialism

Front 15

Loss of best and brightest people to other countries

Back 15

Brain Drain

Front 16

Economic and political system where the state makes all economic decisons and owns almost all the major factors of prodction

Back 16

Communism

Front 17

Economic systems where the market largely determines what goods and services get produced, who gets them, and how the economy grows

Back 17

Free-market economies

Front 18

Economic systems where the government largely decides what goods and services will be produced, who will get them, and how the economy will grow

Back 18

Command Economies

Front 19

Economic systems where some allocation of resources is made by the market and some by the government

Back 19

Mixed Economies

Front 20

Total value of goods and services produced in a country in a given year

Back 20

Gross Domestic Product (GDP)

Front 21

Number of civilians as least 16 years old who are unemployed and tried to find a job within the prior 4 weeks

Back 21

Unemployment Rate

Front 22

General rise in the prices of goods and services over time

Back 22

Inflation

Front 23

Situation where price increases are slowing (the inflation rate is declining)

Back 23

Disinflation

Front 24

Situation where prices are declining

Back 24

Deflation

Front 25

Monthly statistic that measure pace of inflation of deflation

Back 25

Consumer Price Index (CPI)

Front 26

Index that measures prices at the wholesale level

Back 26

Producer Price Index (PPI)

Front 27

Periodic rises and falls that occur in all economies over time

Back 27

Business Cycles

Front 28

Two or more consecutive quarters of decline in the GDP

Back 28

Recession

Front 29

Severe Recession

Back 29

Depression

Front 30

Federal government's effort to keep the economy stable by increasing or decreasing taxes or government spending

Back 30

Fiscal Policy