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21 Cards in this Set
- Front
- Back
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Free Enterprise
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A system of business in which individuals decide what to produce, how to produce it, and what it’s price is.
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Stakeholders
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All the different people or groups of people who are affected by the policies, decisions, and actions made by an organization.
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Economics
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The study of how wealth (or anything of value) is created and distributed (who gets what)
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Microeconomics
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The study of decisions made by individuals and businesses.
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Economy
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The decisions that an individual, society, the government, or a business firm make. The way people deal with the creation and the distribution of the wealth determines the kind of economy system or the economy the nation has.
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Macroeconomics
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The study of National economy and/or Global economy
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Invisible Hand
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Describes how an individual’s personal gain benefits others and a nation’s economy.
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Capitalism
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Individuals own and operate the majority of businesses that provide goods and services.
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US = Mixed Economy
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An economy that has elements of both capitalism and socialism.
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Command Economy
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The government decides what is produced, how, who it is produced for, and to whom it is produced too.
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GDP
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Total market value of all final service products produced domestically.
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Total Aggregate Expenditures
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The total amount of expenditures in the economy.
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Fractional Unemployment |
* People who are between jobs. * Also called natural unemployment. |
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Seasonal Unemployment |
People whose services are not needed during some seasons. |
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Cynical Unemployment |
* Unemployed due to poor economic conditions. * Probably the best indicator of economic conditions. |
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Structural Unemployment |
Unemployed due to inadequate work skills |
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Inflation |
Increase in the general level of prices of products and services over a specific period of time. |
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Cost push inflation |
Higher prices charged by firms are caused by higher cost. |
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Demand pull inflation |
Higher prices due to stronger consumer demand for products. |
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Federal Deficit |
A shortfall created when the federal government spends more in fiscal year than it receives. |
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Business Cycle |
The recurrence of periods of growth and recession in a nation's economic activity. |
