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32 Cards in this Set
- Front
- Back
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Business Cycle |
The recurrence of periods of growth and recession in a nation’s economic activity. |
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Business
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An organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs. |
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Capitalism |
An economic system in which individuals own and operate the majority of businesses that provide goods and services |
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Command Economy |
An economic system in which the government decides what goods and services will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production. |
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Communism |
An economic system where all property and profits are owned by the state. |
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Competition |
Rivalry among businesses for sales to potential customers |
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Consumer Price Index (CPI) |
A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area. |
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Consumer Products |
Goods and services purchased by individuals for personal consumption. |
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Deflation |
A general decrease in the levels of prices. |
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Demand |
The quantity of a product that buyers are willing to purchase at each of various prices |
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Depression |
A severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession. |
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Economics |
The Study of how wealth is created and distributed. |
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Economy |
The way in which people deal with the creation and distribution of wealth. |
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Equilibrium Price |
The price at which the quantity demanded is exactly equal to the quantity supplied |
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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. |
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Inflation |
A general rise in level of prices |
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Invisible Hand |
A concept that describes how an individual’s own personal gain benefits others and a nation’s economy. |
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Macroeconomics |
The study of the national economy and the global economy. |
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Market Economy: |
An economic system in which businesses and individuals decide what to produce and buy and the market determines quantities sold and prices |
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Microeconomics |
The Study of the decisions made by individuals and businesses. |
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Mixed Economy |
An Economic system where most land and business are privately owned but with various levels of government intervention. |
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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. |
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Monopoly |
A market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry. |
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Natural Monopoly |
An industry requiring huge investments in capital and within which any duplication of facilities would be wasteful, and thus not in the public interest. |
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Oligopoly |
A market (or industry) in which there are few sellers. |
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Perfect Competition(or pure) |
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 that product |
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Producer Price Index (PPI) |
An index that measure prices that producers receive for their finished goods. |
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Product Differentiation |
The process of developing and promoting differences between one’s products and all competitive products. |
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Recession |
Two or more consecutive three-month periods of decline in a country’s GDP. |
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Socialism |
In a socialist economy, the key industries are owned and controlled by the government. |
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Supply |
The quantity of a product that producers are willing to sell at each of various prices |
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Unemployment Rate |
The percentage of a nation’s labor force unemployed at any time |
