Chapter 1: Intro To Business Management

Front 1

business

Back 1

an organization that provides goods or services to earn profits

Front 2

profits

Back 2

the difference between a business's revenues and its expenses

Front 3

economic system

Back 3

a nation's system for allocating its resources among its citizens

Front 4

factors of production

Back 4

resources used in the production of goods and services- labor, capital, entrepreneurs, physical resources, and information resources

Front 5

labor (human resources)

Back 5

the physical and mental capabilities of people as they contribute to economic production

Front 6

capital

Back 6

the funds needed to create and operate a business enterprise

Front 7

entrepreneur

Back 7

an individual who accepts the risks and opportunities involved in creating and operating a new business venture

Front 8

physical resources

Back 8

tangible things organizations use in the conduct of business

Front 9

information resources

Back 9

data and other information used by business

Front 10

planned economy

Back 10

economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions

Front 11

market economy

Back 11

economy in which individuals control production and allocation decisions through supply and demand

Front 12

market

Back 12

mechanism for exchange between buyers and sellers of a particular good

Front 13

input market

Back 13

market in which firms buy resources from supplier households

Front 14

output market

Back 14

market in which firms supply goods and services in response to demand on the part of households

Front 15

capitalism

Back 15

market economy that provides for private ownership of production and encourages entrepreneurship by offering profits as an incentive

Front 16

mixed market economy

Back 16

economic system featuring characteristics of both planned and market economies

Front 17

privatization

Back 17

process of converting government enterprises into privately owned companies

Front 18

socialism

Back 18

planned economic system in which the government owns and operates only selected major sources of production

Front 19

demand

Back 19

the willingness and ability of buyers to purchase a good or service

Front 20

supply

Back 20

the willingness and ability of producers to offer a good or service for sale

Front 21

law of demand

Back 21

principle that buyers will purchase more of a product as its price drops and less as its price increases

Front 22

law of supply

Back 22

principle that producers will offer more of a product for sale as its price rises and less as its price drops

Front 23

demand and supply schedule

Back 23

assessment of the relationships between different levels of demand and supply at different price levels

Front 24

demand curve

Back 24

graph showing how many units of a product will be demanded at different prices

Front 25

supply curve

Back 25

graph showing how many units of a product will be supplied at different prices

Front 26

market price (equilibrium)

Back 26

profit maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal

Front 27

surplus

Back 27

situation in which quantity supplied exceeds quantity demanded

Front 28

shortage

Back 28

situation in which quantity demanded exceeds quantity supplied

Front 29

private enterprise

Back 29

economic system that allows individuals to pursue their own interests without undue governmental restriction

Front 30

competition

Back 30

vying among businesses for the same resources or customers

Front 31

perfect competition

Back 31

market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors

Front 32

oligopoly

Back 32

market or industry characterized by a handful of generally larde sellers with the power to influence the prices of their products

Front 33

monopoly

Back 33

market or industry in which there is only one producer, which can therefore set the prices of its products

Front 34

natural monopoly

Back 34

industry in which one company can most efficiently supply all needed goods or services

Front 35

business cycle

Back 35

pattern of short-term ups and downs in an economy

Front 36

aggregate output

Back 36

total quantity of goods and services produced by an economic system during a given period

Front 37

standard of living

Back 37

total quantity of goods and services that country's citizens can purchase with the currency used in their economic system

Front 38

gross domestic product (GDP)

Back 38

total value of all goods and services produced within a given period by a national economy through domestic factors of production

Front 39

nominal GDP

Back 39

GDP measured in current dollars or with all components valued at current prices

Front 40

real GDP

Back 40

GDP calculated for changes in currency values and price changes

Front 41

productivity

Back 41

measure of economic growth that compares how much a system produces with the resources needed to produce it

Front 42

national debt

Back 42

amount of money that a gov't owes its creditors

Front 43

stability

Back 43

condition in an economic system in which the amount of moeny available and the quantity of goods and services produced are growing at about the same rate

Front 44

inflation

Back 44

occurrence of widespread price increases throughout an economic system

Front 45

consumer price index

Back 45

measure of prices of typical products purchased by consumers living in urban areas

Front 46

unemployment

Back 46

level of joblessness among people actively seeking work in an economic system

Front 47

recession

Back 47

period during which aggregate output, as measured by real GDP, declines

Front 48

depression

Back 48

particularly severe and long-lasting recession

Front 49

fiscal policies

Back 49

economic policies that determine how the government collects and spends its revenues

Front 50

monetary policies

Back 50

gov't economic policies that determine the size of a nation's monetary supply

Front 51

stabilization policy

Back 51

government policy, embracing both fiscal and monetary policies, whose goal is to smooth out fluctuations in output and unemployment and to stabilize prices