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31 Cards in this Set
- Front
- Back
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market price (equilibrium price)
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profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied is equal
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surplus
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situation in which quanity supplied exceed quantity demanded
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shortage
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situation in which the quantity demanded exceeds the quantity supplied
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private enterprise
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economic system that allows individuals to pursue their own interests without undue governmental restriction
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competition
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vying among businesses for the same resources
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perfect competition
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market or industry characterized by numerous small firms producing an identical product
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monopolistic competition
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market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors
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oligopoly
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market or industry in which there is only one producer that can therefore set the prices of its products
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monopoly
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market or industry in which there is only one producer that can therefore set the prices of its products
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natural monopoly
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industry in which one company can most efficiently supply all needed goods or services
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economic indicator
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a statistic that helps assess the performance of an economy
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business cycle
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short-term pattern of economic expansions and contractions
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aggregate output
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the total quantity and quality of goods and services produced by an economic system during that a given period of time
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standard of living
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the total quantity and quality of goods and services people can purchase with the currency used in their economic system
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gross domestic product
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total value of all goods and services produced within a given period by a national economy through domestic factors and production
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gross national product
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total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located
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real GDP
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gross domestic product adjusted to account for changes in currency values and price changes
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nominal GDP
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gross domestic product measured in current dollars or with all components valued at current prices
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purchasing power parity
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principle that exchange rates are set so that similar products in different countries cost about the same
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productivity
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a measure of economic growth that compares how much a system produces with the resources needed to produce it
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balance of trade
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the economic value of all the products that a country exports minus the economic value of all the products it imports
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national debt
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the amount of money a government owes its creditors
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stability
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condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate
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inflation
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occurs when widespread price increases occur thoughout an economic system
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consumer price index
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a measure of the prices of typical products purchased by consumers living in urban areas
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unemployment
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level of joblessness among people actively seeking with within an economic system
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recession
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a period during which aggregate output, as measured by GDP, declines
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depression
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a prolonged and deep recession
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fiscal policies
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policies used by a government regarding how it collects and spends revenue
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monetary policies
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policies used by a government to control the size of its money supply
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stabilization policy
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government economic policy intended to smooth out influctuations in output and unemployment and to stabilize prices
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