Test Number One

Front 1

Budget deficit

Back 1

The condition in which a nation spends more than it takes in from taxes

Front 2

Budget surplus

Back 2

The condition when a nation spends less than it takes in from taxes

Front 3

Business

Back 3

Individuals or organizations that try to earn a profit by providing products that satisfy people's needs

Front 4

Capitalism, or free enterprise

Back 4

An economic system in which individuals own and operate the majority of businesses that provide goods and services

Front 5

Communism

Back 5

First described by Karl Marx as a society in which the people, without regard to class, own all the nation's resources

Front 6

Competition

Back 6

The rivalry among businesses for consumers' dollars

Front 7

Demand

Back 7

The number of goods and services that consumers are willing to buy at different prices at a specific time

Front 8

Depression

Back 8

A condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced

Front 9

Economic contraction

Back 9

A slowdown of the economy characterized by the decline in spending and during which businesses cut back on production and lay off workers

Front 10

Economic expansion

Back 10

The situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment

Front 11

Economic system

Back 11

A description of how a particular society distributes its resources to produce goods and services

Front 12

Economics

Back 12

The study of how resources are distributed for the production of goods and services within a social system

Front 13

Entrepreneur

Back 13

An individual who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something

Front 14

Equilibrium price

Back 14

The price at which the number of products businesses are willing to supply equals the amount of products consumers are willing to buy at a specific point in time

Front 15

Financial resources

Back 15

The funds used to acquire the natural and human resources needed to provide products; and also capital

Front 16

Free-market system

Back 16

Pure capitalism, in which all economic decisions are made without government intervention

Front 17

Gross domestic product (GDP)

Back 17

The sum of all goods and services produced in a country during a year

Front 18

Human resources

Back 18

The physical and mental abilities that people use to produce goods and services; also called labour

Front 19

Inflation

Back 19

A condition characterized by continuing rise in prices

Front 20

Mixed economies

Back 20

Economies made up of elements from more than one economic system

Front 21

Monopolistic competition

Back 21

The market structure that exist when there are fewer businesses than in a pure competition environment and the differences among the goods they sell are small

Front 22

Monopoly

Back 22

The market structure that exists when there is only one business providing a product in a given market

Front 23

Natural resources

Back 23

Land, forests, minerals, water, and other things that are not made by people

Front 24

Non-profit organizations

Back 24

Organizations that may provide goods and services but do not have the fundamental purpose of earning profits

Front 25

Oligopoly

Back 25

A market structure that exists when there are very few businesses selling a product

Front 26

Product

Back 26

A good or service with tangible and intangible characteristics that provide satisfaction and benefits

Front 27

Profit

Back 27

The difference between what it costs to make and sell a product and what a customer pays for it

Front 28

Pure competition

Back 28

The market structure that exists when there are many small businesses selling one standardized product

Front 29

Recession

Back 29

a decline in production, employment, and income

Front 30

Socialism

Back 30

An economic system in which the government owns and operates basic industries, but individuals own most businesses

Front 31

Stakeholders

Back 31

Groups that have a stake in the success and outcomes of a business

Front 32

Supply

Back 32

The number of products--goods or services--that businesses are willing to sell at different prices at a specific time

Front 33

Unemployment

Back 33

The condition in which a percentage of the population wants to work but is unable to find jobs

Front 34

Bribes

Back 34

Payments, gifts, or special favors intended to influence the outcome of a decision

Front 35

Business ethics

Back 35

The principles and standards that determine acceptable conduct in business

Front 36

Code of Ethics

Back 36

Formalized rules and standards that describe what a company expects of its employees

Front 37

Consumerism

Back 37

The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers

Front 38

Corporate citizenship

Back 38

The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders

Front 39

Ethical issue

Back 39

Unidentifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical

Front 40

Plagiarism

Back 40

The act of taking someone else's work and presenting it as your own without mentioning the source

Front 41

Social responsibility

Back 41

A business's obligation to maximize its positive impact and minimize its negative impact on society

Front 42

Whistle blowing

Back 42

The act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies