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38 Cards in this Set

  • Front
  • Back
The system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it
free enterprise
The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the Internet
The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs
what remains after all business expenses have been deducted from sales revenue
the study of how wealth is created and distributed
the way in which people deal with the creation and distribution of wealth
land and natural resources, labor, capital, and entrepreneurship.
factors of production
A person who risks time, effort, and money to start and operate a business
An economic system in which individuals own and operate the majority of businesses that provide goods and services.
An economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices.
market economy
An economy that exhibits elements of both capitalism and socialism
mixed economy
Goods and services purchased by individuals for personal consumption
consumer products
An economic system in which the government decides what will be produced, how it will be produced, who gets what is produced, and who owns and controls the major factors of production.
command economy
The average level of output per worker per hour
The total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period.
gross domestic product (GDP)
A general rise in the level of prices.
The recurrence of periods of growth and recession in a nation's economic activity
business cycle
Two or more consecutive three-month periods of decline in a country's gross domestic product
A severe recession that lasts longer than a recession
Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates
monetary policies
Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
fiscal policy
A shortfall created when the federal government spends more in a fiscal year than it receives
federal deficit
The total of all federal deficits
national debt
Rivalry among businesses for sales to potential customers
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
pure competition
The quantity of a product that producers are willing to sell at each of various prices
The quantity of a product that buyers are willing to purchase at each of various prices
The price at which the quantity demanded is exactly equal to the quantity supplied
market price
A market situation in which there are many buyers along with a relatively large number of selles who differentiate their products from the products of competitors.
monopolistic competition
The process of developing and promoting differences between one's products and all similar products
product differentiation
A market (or industry) in which there are few sellers
A market (or industry) with only one seller
An industry requring huge investments in capital and within which duplication of facilities would be wasteful and thus not in the public interest
natural monopoly
A system of exchange in which good or services are traded directly for other goods and /or services without using money
A method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families would process them into finished goods to be offered for sale by the merchant entrepreneur
domestic system
A system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place
factory system
The separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals
A loose, subjective measure of how well off an individual or a society is mainly in terms of want satisfaction through goods and services
standard of living