Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
51 Cards in this Set
- Front
- Back
business |
an organization that provides goods or services to earn profits
|
|
profits
|
the difference between a business's revenues and its expenses
|
|
economic system
|
a nation's system for allocating its resources among its citizens
|
|
factors of production
|
resources used in the production of goods and services- labor, capital, entrepreneurs, physical resources, and information resources
|
|
labor (human resources)
|
the physical and mental capabilities of people as they contribute to economic production
|
|
capital
|
the funds needed to create and operate a business enterprise
|
|
entrepreneur
|
an individual who accepts the risks and opportunities involved in creating and operating a new business venture
|
|
physical resources
|
tangible things organizations use in the conduct of business
|
|
information resources
|
data and other information used by business
|
|
planned economy
|
economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions
|
|
market economy
|
economy in which individuals control production and allocation decisions through supply and demand
|
|
market
|
mechanism for exchange between buyers and sellers of a particular good
|
|
input market
|
market in which firms buy resources from supplier households
|
|
output market
|
market in which firms supply goods and services in response to demand on the part of households
|
|
capitalism
|
market economy that provides for private ownership of production and encourages entrepreneurship by offering profits as an incentive
|
|
mixed market economy
|
economic system featuring characteristics of both planned and market economies
|
|
privatization
|
process of converting government enterprises into privately owned companies
|
|
socialism
|
planned economic system in which the government owns and operates only selected major sources of production
|
|
demand
|
the willingness and ability of buyers to purchase a good or service
|
|
supply
|
the willingness and ability of producers to offer a good or service for sale
|
|
law of demand
|
principle that buyers will purchase more of a product as its price drops and less as its price increases
|
|
law of supply
|
principle that producers will offer more of a product for sale as its price rises and less as its price drops
|
|
demand and supply schedule
|
assessment of the relationships between different levels of demand and supply at different price levels
|
|
demand curve
|
graph showing how many units of a product will be demanded at different prices
|
|
supply curve
|
graph showing how many units of a product will be supplied at different prices
|
|
market price (equilibrium)
|
profit maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal
|
|
surplus
|
situation in which quantity supplied exceeds quantity demanded
|
|
shortage
|
situation in which quantity demanded exceeds quantity supplied
|
|
private enterprise
|
economic system that allows individuals to pursue their own interests without undue governmental restriction
|
|
competition
|
vying among businesses for the same resources or customers
|
|
perfect competition
|
market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors
|
|
oligopoly
|
market or industry characterized by a handful of generally larde sellers with the power to influence the prices of their products
|
|
monopoly
|
market or industry in which there is only one producer, which can therefore set the prices of its products
|
|
natural monopoly
|
industry in which one company can most efficiently supply all needed goods or services
|
|
business cycle
|
pattern of short-term ups and downs in an economy
|
|
aggregate output
|
total quantity of goods and services produced by an economic system during a given period
|
|
standard of living
|
total quantity of goods and services that country's citizens can purchase with the currency used in their economic system
|
|
gross domestic product (GDP)
|
total value of all goods and services produced within a given period by a national economy through domestic factors of production
|
|
nominal GDP
|
GDP measured in current dollars or with all components valued at current prices
|
|
real GDP
|
GDP calculated for changes in currency values and price changes
|
|
productivity
|
measure of economic growth that compares how much a system produces with the resources needed to produce it
|
|
national debt
|
amount of money that a gov't owes its creditors
|
|
stability
|
condition in an economic system in which the amount of moeny available and the quantity of goods and services produced are growing at about the same rate
|
|
inflation
|
occurrence of widespread price increases throughout an economic system
|
|
consumer price index
|
measure of prices of typical products purchased by consumers living in urban areas
|
|
unemployment
|
level of joblessness among people actively seeking work in an economic system
|
|
recession
|
period during which aggregate output, as measured by real GDP, declines
|
|
depression
|
particularly severe and long-lasting recession
|
|
fiscal policies
|
economic policies that determine how the government collects and spends its revenues
|
|
monetary policies
|
gov't economic policies that determine the size of a nation's monetary supply
|
|
stabilization policy
|
government policy, embracing both fiscal and monetary policies, whose goal is to smooth out fluctuations in output and unemployment and to stabilize prices
|