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49 Cards in this Set
- Front
- Back
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external stakeholders |
individuals outside a firm who are affected by its actions |
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internal stakeholders |
people in a firm who are affected by its actions |
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outsourcing |
using outside vendors for goods and services |
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stakeholder |
a person/group/organization affected by business operations |
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stockholder/shareholder |
an investor who owns shares of an organization |
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economics |
an analysis of how societies use scare resources to produce, distribute, and monitor consumptions of goods and services around the world |
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invisible hand |
Adam Smith's philosophy that describes how an individual's personal gain benefits others and the economy |
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microeconomics |
a division of economics that studies the behavior of individual consumers and suppliers as they make decisions |
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supply |
the amount of goods or services producers are willing and able to produce in the market at different prices |
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demand |
readiness and capability of buyers to purchase goods or services at different price levels |
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equilibrium price |
the point at which supply matches demand |
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3 main questions from economics |
1) What goods and services will be produced? 2) How will they be produced? 3) How will they be distributed among members of society? |
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macroeconomics |
the study of economic indicators such as unemployment, inflation, and gross domestic product (GDP), and their influence on the economy as a whole |
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Gross Domestic Product (GDP) |
the total value of goods and services produced within a country's borders over some unit of time |
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productivity |
a measure of how much is produced with available resources |
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per capita GDP |
a measure of a country's economic strength and standard of living as compared to other countries |
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consumer price index (CPI) |
measures the average prices of a basket of |
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total labor force |
all individuals over sixteen who are actively seeking employment |
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unemployment rate |
total unemployed workers in the total labor force |
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discouraged workers |
workers who gave up job hunting |
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underemployed workers |
people working but not utilizing skills/education |
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business cycle |
the phases of growth and decline in an economy |
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Business Cycle Phases |
1) Expansion (recovery) 2) Boom stage (peak) 3) Recession 4) Depression |
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Expansion |
steady growth in GDP and economy |
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boom stage |
high point, high rates of inflation, GDP maximizes |
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recession |
steady GDP decline, six months or more |
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depression |
sustained decline in GDP over a long period of time |
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Capitalism |
free market private control of production and consumption United States privately owned businesses, large number of businesses, limited government interferences, ability to retain profits, increased level of innovation and motivation of entrepreneurs |
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Socialism |
major industries controlled by government private owners operate noncritical industry businesses production for use rather than profit equality of individual wealth absence of competitive economic activity government determination of investments, prices, production levels Denmark, Findland, Sweden, Netherlands, Norway, Ireland, Canada, Belgium |
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Communism |
all activity is controlled by a centralized government profits not allowed for individual business owners Marxism China, North Korea, Laos, Vietnam, Cuba |
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Mixed Economies |
combine elements of capitalism and socialism some industries privately owned and others publicly owned or nationalized France private sector owns most businesses and makes profit state run business entities make profit too |
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pure competition |
many competitors with little influences on price exists on market |
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monopolistic competition |
many heterogeneous products are sold by firms and are differentiated in marketplace |
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monopoly |
a market environment where only one provider of a certain economic good or service exists |
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oligopoly |
a small group of firms control the market |
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keynesian |
school of economic thought that supports government intervention to stabilize the economy |
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monetarism |
school of though that the Federal Reserve System should control the supply of money as the chief method for stabilizing the economy |
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monetary policy |
the actions of the Federal Reserve System to achieve macroeconomic policy objectives such as price, stability, full employment, and economic growth |
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expansionary monetary policy |
stimulating the economy by increasing the money supply and lowering interest rates |
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restrictive monetary policy |
slowing down the economy by decreasing money supply and raising interest rates |
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fiscal policy |
the actions of the federal government to achieve macroeconomic policy objectives through the "tax and spend" policies |
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Federal Reserve Bank |
the central back of the US which regulates banking institutions |
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Troubled Asset Relief Program (TARP) |
plan created in 2008 by the US Congress to assist failing financial institutions and save the US economy from collapse |
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Dodd-France Act |
law passed in 2010 to help lower risks in the financial system and protect consumers |
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global economic challenges: technological |
massive incidences of data fraud, theft, cyber attacks, infrastructure breakdowns |
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global economic challenges: societal |
pandemic outbreak, water crisis |
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global economic challenges: geopolitical |
small or large scale terrorist attacks, interstate conflicts, weapons of mass destruction |
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global economic challenges: environmental |
extreme weather conditions, failure to adapt to climate change |
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global economic challenges: economic |
fiscal crises in key economies, unemployment or underemployment, energy price shock |
