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34 Cards in this Set
- Front
- Back
Economics |
The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. |
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Macroeconomics |
The part of economics study that looks at the operation of a nation's economy as a whole. |
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Microeconomics |
The part of economics study that looks at the behavior of people and organizations in particular markets. |
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Resource development |
The study of how to increase resources and to create the conditions that will make better use of those resources. |
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Invisible hand |
A Phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all. |
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Capitalism
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An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.
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Supply |
The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time. |
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Demand |
The quantity of products that people are willing to buy at different prices at a specific time. |
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Market Price |
The price determined by supply and demand. |
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Perfect Competition |
The degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product. |
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Monopolistic Competition |
The degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different. |
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Oligopoly |
A degree of competition in which just a few sellers dominate the market. |
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Monopoly |
A degree of competition in which only one seller controls the total supply of a product or service, and sets the price. |
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Socialism |
An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people. |
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Brain Drain |
The loss of the best and brightest people to other countries. |
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Communism |
An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production. |
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Free-market Economics |
Economic systems in which the market largely determines what goods and services get produced, who will get them, and how the economy will grow. |
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Command Economics |
Economic systems in which the government largely determines what goods and services get produced, who will get them, and how the economy will grow. |
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Mixed Economics |
Economic systems in which some allocation of resources is made by the market and some by the government. |
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Gross Domestic Product (GDP) |
The total value of final goods and services produced in a country in a given year. |
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Unemployment Rate |
The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks. |
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Inflation |
A general rise in the prices of goods and services over time. |
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Disinflation |
A situation in which price increases are slowing (the inflation rate is declining). |
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Deflation |
A situation in which prices are declining. |
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Stagflation |
A situation when the economy is slowing but prices are going up anyhow. |
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Consumer Price Index (CPI) |
Monthly statistics that measure the pace of inflation or deflation. |
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Producer Price Index (PPI) |
An index that measures prices at the wholesale level. |
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Business Cycles |
The periodic rises and falls that occur in economies over time. |
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Recession |
Two or more consecutive quarters of decline in the GDP. |
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Depression |
A sever recession, usually accompanied by deflation. |
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Fiscal Policy |
The federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending. |
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National Debt |
The sum of the government deficits over time. |
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Keynesian Economic Theory |
The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession. |
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Monetary Policy |
The management of the money supply and interest rates by the Federal Reserve. |