business 100 chapter 1

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  1. free enterprise
    the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it
  2. culture(or workplace) diversity
    differences among people in a workforce owing to race, ethnicity, and gender
  3. business
    the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy societys needs
  4. for business to be succesful, it must preform in these three activites
    be oirganized, satisfy needs, earn a profit
  5. profit
    what remains after all business expences have been deducted from sales revenue
  6. stockholders
    all the different people or groups of people who are affected by the decisions made by an organization
  7. economics
    the study of how wealth is created and distributed
  8. microeconomics
    the study of decisions made by individuals and businesses
  9. macroeconomics
    the study of the national economy and the global economy
  10. emergency stabilization act
    a 700 billion bailout plan created to stabilize the nations economy and restore confidence in the banking and financial industries
  11. factors of production (definition)
    resources used to produce goods and services
  12. factors of production
    land and natural resources, labor, capital, and entrepenurship
  13. capitalism
    an economic system in which individuals own and operate the majority of businesses that provide goods and services
  14. invisible hand (capitalism)
    how an individuals own personal gain benifits others and a nations economy
  15. basic fundemental issues of capitalism
    right to create wealth, right to own private property and resources, freedom to compete
  16. laizzez faire
    there should be no government interferance in the economy
  17. market economy/free market
    businesses and individuals decide hat to produce and buy, and the market determines quantities sold and prices
  18. mixed economy
    an economy that exhibits elements of both capitalism and socialism
  19. consumer products
    goods and services purchased by individuals for personal consumption
  20. socialism
    the key industries are controlled and owned by the government
  21. communism(karl marx)
    a classless society whose citiznes together owned all economic resources; today they practice a strictly controlled kind of socialism
  22. command economy
    the government decides what goods and services will be produced, how they will be produced, for whom avalible goods and services will be produced, and who owns and controls the major factors of production
  23. productivity
    the average level of output per worker per hour
  24. how does a nation improve productivity
    reducing costs and enabling emplyees to work more efficently
  25. Gross domestic product (GDP)
    can be used to measure the economic well being of a nation; the total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period
  26. prime interest raate
    the lowest interest rate that banks charge there monthly creditworthy customers
  27. consumer price index (CPI)
    a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
  28. Producer price index
    an andex that measures prices at the wholesale level
Card Set:
business 100 chapter 1
2012-02-09 19:16:50
business 100 chapter

business 100 chapter 1
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