Business Fundamentals Chapter 3

Front 1

economics

Back 1

The social signs that studies the choices that people and governments make when dividing up there scarce resources

Front 2

Microeconomics

Back 2

The study of small economic units such as individual consumers families and businesses

Front 3

Macroeconomics

Back 3

Dissemination is overall economic issues such as how an economy maintains and divides of resources in the house of government policies affect its citizens standard of living

Front 4

Demand

Back 4

The willingness and ability of buyers to purchase goods and services

Front 5

Supply

Back 5

The willingness and ability of sellers to provide goods and services

Front 6

demand curve

Back 6

a graph representing the the amount of product that buyers will purchase at different prices

Front 7

supply curve

Back 7

a graph that shows the relationship between different prices and the amount if goods a supplier is willing to sell, regardless of demand

Front 8

equilibrium price

Back 8

The current market price for an item, found where supply and demand curves meet.

Front 9

Pure competition

Back 9

My market structure where large numbers of buyers and sellers exchange similar products and no single participant has a large in influence on price

Front 10

Monopolistic competition

Back 10

A market structure where large numbers of buyers and sellers exchange similar products to each participant has some control over price

Front 11

Oligopoly

Back 11

Hi market situation where relatively few sellers compete and a high start-up costs act as barriers to keep out new competitors

Front 12

Monopoly

Back 12

Market situation where a single seller controls trade in a good or service and buyers can find no close substitutes

Front 13

Regulated monopoly

Back 13

Affirm that is grant exclusive rights in a specific market by a local, provincial or federal government

Front 14

Planned economy

Back 14

An economic system where business ownership profits and resource allocation are shaped by a plan to meet government goals now call set by individual firms

Front 15

Socialism

Back 15

Any conomic system where the government owns and operates major industries such as communications

Front 16

Communism

Back 16

An economic system where all property is shared equally by the people in a community under the direction of a strong central government

Front 17

Mixed market economy

Back 17

An economic system that draws from both private enterprise economies and planned economies to different degrees

Front 18

Privatization

Back 18

The conversion of government owned and operated companies to privately held businesses

Front 19

Recession

Back 19

A cycle of economic contraction that lasts for 6 months or longer

Front 20

Productivity

Back 20

The relationship between the number of units produced and the number of human and other production inputs needed to produce them

Front 21

Gross domestic product GDP

Back 21

The sum of all goods and services produced within a country during a specific. Such as a year

Front 22

Inflation

Back 22

Rising prices caused by a combination of excess customer demand and higher cost of raw materials, component parts, human resources and other factors of production

Front 23

Core inflation rate

Back 23

The inflation rate after energy prices and food prices are removed

Front 24

Hyperinflation

Back 24

An economic situation marked by soaring prices

Front 25

Deflation

Back 25

Opposite of inflation occurs when prices continue to fall

Front 26

Consumer Price Index CPI

Back 26

A measurement of the monthly average change in prices of goods and services

Front 27

Unemployment rate

Back 27

The percentage of the total workforce actively seeking work but currently unemployed

Front 28

Frictional unemployment

Back 28

The joblessness of people in the workforce who are temporarily not working but looking for jobs

Front 29

Seasonal unemployment

Back 29

The joblessness of people in the workers in a seasonal industry

Front 30

Cyclical unemployment

Back 30

The joblessness of people who are out of work because of the cyclical contraction in the economy

Front 31

Structural unemployment

Back 31

The joblessness of people who remain unemployed for long periods of time. often with little hope of finding a job

Front 32

Monetary policy

Back 32

A government plan to increase or decrease the money supply and change banking requirements and interest rates to affect bankers willingness to make loans

Front 33

Expansionary monetary policy

Back 33

I plan to increase the money supply to try to decrease the cost of borrowing where is restorate encourage businesses to make new investments which leads to employment and econnomic growth

Front 34

Restrictive monetary policy

Back 34

A plan to reduce the money supply to control rising prices, over expansion, and concerns about overly rapid economic growth

Front 35

Fiscal policy

Back 35

A plan of government spending and taxation decisions design to control inflation, reduce unemployment, improve the general welfare of its citizens and encourage economic growth

Front 36

Budget

Back 36

An organization's plan for how it will raise and spend money during a specific period Of time

Front 37

Budget deficit

Back 37

A situation where the government spends more than a raises through taxes

Front 38

National debt

Back 38

The money owed by a government to individuals, businesses, and government agencies to purchase Treasury bills, Treasury notes, and Treasury bonds.

Front 39

Budget surplus

Back 39

The excess funding when government spends less than it raises through taxes and fees

Front 40

Balanced budget

Back 40

A situation where total revenues raised by taxes and fees equal the total proposed government spending for the year