Business Chapter 1
Card Set Information
Business Chapter 1
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.
Differences among people in a workforce owing to race, ethnicity, and gender.
Cultural (or workplace) diversity
The organized effort of individuals to produce and sell, for a profit, the foods and services that satisfy society's needs.
What remains after all business expenses have been deducted from sales revenue.
All the different people or groups of people who are affected by the policies and decisions made by ann organization.
The stufy of how wealth is created and distributed.
The study of the decisions made by individuals and businesses.
The study of the national economy and the global economy.
The way in which people deal with the creation and destribution of wealth.
Resources used to produce goods and services.
Factors of production
A person who risks time, effort, and money to start and operate a business.
An economic system in which indiciduals own and operate the majority of businesses that provide goods and services.
A term created by Adam Smith to describe how an individula's personal gain benefits others and a nation's economy.
An economic system in which businesses and indiciduals decide what to produce and buy, and the market determines quiantities sold and prices.
An economy that exhibits elements of both capitalism and socialism.
Goods and services purchased by individuals for personal consumption.
An economic system in which the government decided what goods and services will be produced, how they will be produced, and who owns and controls the major factors of production.
The average level of output per worker per hour.
The total dollar value of all goods and services produced by all people within the boudaries of a country during a one-year period.
Gross domestic product (GDP)
A general rise in the level of prices.
A gerneral decrease in the level of prices.
The percentage of a nation's labor force unemployed at any time.
A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area.
Consumer price index (CPI)
An index that measures prices that producers recieve for their finished goods.
Producer price index (PPI)
The recurrence of periods of growth and recession in a nation's economic activity.
Two or more consecutive three-month periods of decline in a country's GDP.
A severe recession that lasts lonfer than a typical recession.
Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates.
Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending.
A shortfall created when the federal government spends more in a fiscal year than it receives.
The total of all federal defictis.
Rivalry among businesses for sales to potential customers.
The market sistuation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product.
Perfect (or pure) competition
The quantity of a product that producers are willing to sell at each of various prices.
The quantity of a product that buyers are willing to purchase at each of various prices.
The price at which the quantity demanded is exavtly equal to the quantity supplied.
A market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors.
The process of developing and promoting differences between one's products and all similar products.
A market (or industry) in which there are few sellers.
A merket (or industry) with only onw seller, and there are barriers to keep other firms from entering the industry.
An industry requiring huge investments ini capital and within which any duplication of facilities would be wasteful and thus not in the public interest.
A loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services.
Standard of living
A system of exchange in which goods or sercices are traded directly for other goods or services without using money.
A method of manufacturing in which an entrepreneur distributes raw materials to various homes, where gamilies process them into finished goods to be offered for sale by the merchant entrepreneur.
A system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place.
The separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals.
The organized effort of individuals to produce and sell throught the Internet, for a profit, the products and services that satisfy society's needs.
An economy in which more effort is decoted to the production of services than to the production of goods.
Meeting the needs of the present without compromising the ability of future generations to meet their own needs.