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tiaral1983
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Social science that analyzes the choices people
and governments make in allocating scarce resource.
Economics
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Study of small economic units, such as
individual consumers, families, and businesses.
Microeconomics
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Study of a nation’s overall economic issues, such as how
an economy maintains and allocates resources and how a government’s policies
affect the standards of living of its citizens
Macroeconomics
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Willingness and ability of buyers to purchase
goods and services.
Demand
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Willingness and ability of sellers to provide
good and services
Supply
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Prevailing market price at which you can buy an item.
Equilibrium price
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Rewards businesses for meeting the needs and
demands of consumers
- Private enterprise system
- (capitalism, market economy)
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Pure competition, monopolistic competition,
oligopoly and monopoly
Types of competition
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Market structure in which large numbers of
buyers and sellers exchange homogeneous products and no single participant has
a significant influence on price
Pure competition
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Market structure in which large numbers of
buyers and sellers exchange heterogeneous products so each participant has some
control over price
Monopolistic competition
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Market situation in which relatively few sellers
compete and high start-up costs form barriers to keep out new competitors
Oligopoly
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Market situation in which a single seller
dominates trade in a good service for which buyers can find no close
substitute.
Monopoly
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Local, state, or federal government grants
exclusive rights in a certain market to a single firm.
Regulated monopoly
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government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms
planned economy
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economic system characterized by government ownership and operation of major industries such as communications
socialism
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economic system in which all property would be shared equally by the people of a community under the direction of a strong central government
communism
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economic system that draws from both types of economies, to different degrees
mixed market economy
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conversion of government-owned and operated companies into privately held businesses
privatization
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cyclical economic contraction that lasts for six months or longer
recession
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relationship between the number of units produced and the number of human and other production inputs necessary to produce them
productivity
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sum of all goods and services produced within a country's boundaries during a specific time period, such as a year
gross domestic product
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rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production
inflation
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inflation rate of an economy after energy and food prices are removed
core inflation rate
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prices caused bu a combination of excess consumer demand an increases in the costs of raw materials, component parts, human resources, and other factors of production
inflation
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economic situation characterized by soaring prices
hyperinflation
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opposite of inflation, occurs when prices continue to fall
deflation
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measurement of the monthly average change in prices of goods and services
consumer price index
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percentage of the total workforce actively seeking work but are currently unemployed
unemployment rate
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applies to members of the workforce who are temporarily not working but are looking for jobs
frictional unemployment
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joblessness of workers in a seasonal industry
seasonal unemployment
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people who are out of work because of the cyclical contraction in the economy
cyclical unemployment
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people who remain unemployed for a long periods of time, often with little hope of finding new jobs like their old ones.
structural unemployment
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government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers willingness to make loans
monetary policy
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increase the money supply
expansionary monetary policy
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reducing the money supply is
restrictive monetary policy
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government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens and encourage economic growth
fiscal policy
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organization's plan for how it will raise and spend money during a given period of time
federal budget
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money owed by government spends more than the amount of money it raises through taxes
national debt
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excess funding that occurs when government spends less than the amount of funds raised through taxes and fees
budget surplus
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situation in which total revenues raised by taxes and fees equal total proposed government spending for the year.
balanced budget
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