business ed chapter 2
Terms
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- 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
- market price
- the price determined by supply and demand
- oligopoly
- a form of competition in which just a few sellers dominate the market
- producer price index
- an index that measures prices at the wholesale level
- command economies
- economic systems in which the government largely decides what goods and services will be produced, who will get produced, and how the economy will grow
- resource development
- the study of how to increase resources and to create the conditions that will make better use of those resources
- supply
- the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
- 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 evenly distributed among the people
- free-market economies
- economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows
- gross domestic product
- the total value of final goods and services produced in a country in a given year
- macroeconomics
- the part of economics that looks at the operation of a nation's economy as a whole
- business cycle
- the periodic rises and falls that occur in all economies over time
- depression
- a severe recession
- brain drain
- the loss of the best and brightest people to other countries
- mixed economies
- economic systems in which some allocation of resources is made by the market and some by the government
- monopolistic competition
- the market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different
- national debt
- the sum of government deficits over time
- microeconomics
- the part of economics that looks at the behavior of people and organizations in particular markets
- monetary policy
- the management of the money supply and interest rates
- fiscal policy
- the federal governments efforts to keep the economy stable by increasing or decreasing taxes or government spending
- communism
- an economic and political system in which the state makes almost all economic decisions and owns almost all the major factors of production
- disinflation
- a situation in which price increases are slowing
- inflation
- a general rise in the prices of goods and services over time
- monopoly
- a market in which there is only one seller for a product or service
- recession
- two or more consecutive quarters of decline in the GDP
- 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
- capitalism
- an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
- deflation
- a situation in which prices are declining
- consumer price index
- monthly statistics that measure the pace of inflation or deflation
- invisible hand
- a phrase coined by adam smith to desribe the process that turns selfdirected gain into social and economic benefits for all.
- perfect competition
- the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product