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44 Cards in this Set
- Front
- Back
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An organization that provides goods or services to earn profits
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Business
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A nation's system for allocating it's resources among it's citizens, both individuals and organizations
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Economic System
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Difference between a business's revenues and it's expenses
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Profits
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Everything outside of an organization's boundaries that might affect it
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External Enviroment
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6 Dimension of the External Enviroment
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Economic, Techological, Socio-Cultural, Domestic Business, Global Business, Political-Legal
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The resources that a country's businesses use to produce goods and services
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Factors of Production
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This economy relies on a centralized government to controll all or most factos of production and to make all or most production and allocation decisions
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Planned Economy
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The willingness and ability of producers to offer a good or service to sale
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Supply
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This economy individual producers and consumers control production and allocation b y creating combinations of supply and demand
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Market Economy
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This economy has features and characteristics of both Planned and Market economies
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Mixed-Market Economy
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The willingness and ability of buyers to pruchase a product
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Demand
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A good or service
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Product
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The Process of converting government enterprises into privately owned companies
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Privatization
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Located between the supply curve and demand curve
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The equilibrium price
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Allows individuals to pursue their own interest with minimal government restriction
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Private Enterprise System
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Ownership of the resources used to create wealth is in the hands of individuals
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Private Property
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You can sell your labor to any employer you choose
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Freedom of Choice
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This leads some people to abandon the security of working for someone else and assume the risks of entreprenership
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Profits
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Occurs when two or more business vie for the same resources and customers
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Competition
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4 Types of Competition
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Perfect, Monopolistic, Oligopoly, Monopoly
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All firms in the industry are small, plus there are many firms, products are similar, it's easy to get in and out of this industry, prices are set up by supply and demand.
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Perfect Competition
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Market characterized by a handful of sellers with the power to influence the prices of their product
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Oligopoly Competition
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Market characterized by numerous buys and relatively numerous sellers trying to differ their products from competitiors
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Monopolistic Competition
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Market were there is only one producer that can set the prices of it's product
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Monopoly
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Statistics that show whether an eocnomic system is stregthening, weakening, or remaining stable
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Economic Indicators
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Industry in which one company can most efficiently supply all needed goods and services
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Natural Monopoly
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The pattern of short-term ups and downs in an economy
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Business Cycle
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Total quantity of goods and services produced by an economic system during a given period
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Aggregate output
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The total quantity and quality of goods and services that they can purchase wiht the currency used in their economic system
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Standard of Living
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Total value of all goods and services produced within a given period by a national economy, through domestic factors of production, and measures aggregate output
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GDP: Gross Domestic Product
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GDP measured in current dollar or with all coponents vlaued at current prices
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Nominal GDP
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The total value of all goods and services produced by a national economy within a given period regardless of where the factos of production are located
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Gross National Product
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Economic Value of Exports - Economic Value of Imports
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Balance of Trade
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The principle that exchange rates are set so that the prices of similar products in different countries are about the same
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Purchasing Power Parity
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Measure of Economic growth that compares how much a system produces with teh resources needed to produce it.
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Productivity
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The amount of money the government owes creditors
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National Debt
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Occurs when widespread price increases occur throughout an economic system
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Inflation
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The level of joblessness among people actively seeking work in an economic system
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Unemployment
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Condition in which the amount of money available in an economic system and quantity of goods and services produced in it are growing at about the same rate
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Stability
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Period in which aggregate output declines
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Recession
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A Prolonged and deep recession
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Depression
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Policies used by a government regarding how it collects and spends revenue
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Fiscal Policies
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Policies used by a government to control the size of its money supply
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Monetary Policies
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Smooves out fluctuation in output and unemployment to stablize prices
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Stabilization Policy
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