Chapter 3 Terms

Social science that analyzes the choices people
and governments make in allocating scarce resource.

Study of small economic units, such as
individual consumers, families, and businesses.

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

Willingness and ability of buyers to purchase
goods and services.

Willingness and ability of sellers to provide
good and services

Prevailing market price at which you can buy an item.

Rewards businesses for meeting the needs and
demands of consumers

Pure competition, monopolistic competition,
oligopoly and monopoly

Market structure in which large numbers of
buyers and sellers exchange homogeneous products and no single participant has
a significant influence on price

Market structure in which large numbers of
buyers and sellers exchange heterogeneous products so each participant has some
control over price

Market situation in which relatively few sellers
compete and high start-up costs form barriers to keep out new competitors

Market situation in which a single seller
dominates trade in a good service for which buyers can find no close
substitute.

Local, state, or federal government grants
exclusive rights in a certain market to a single firm.

government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms

economic system characterized by government ownership and operation of major industries such as communications

economic system in which all property would be shared equally by the people of a community under the direction of a strong central government

economic system that draws from both types of economies, to different degrees

conversion of government-owned and operated companies into privately held businesses

cyclical economic contraction that lasts for six months or longer

relationship between the number of units produced and the number of human and other production inputs necessary to produce them

sum of all goods and services produced within a country's boundaries during a specific time period, such as a year

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 rate of an economy after energy and food prices are removed

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

economic situation characterized by soaring prices

opposite of inflation, occurs when prices continue to fall

measurement of the monthly average change in prices of goods and services

percentage of the total workforce actively seeking work but are currently unemployed

applies to members of the workforce who are temporarily not working but are looking for jobs

joblessness of workers in a seasonal industry

people who are out of work because of the cyclical contraction in the economy

people who remain unemployed for a long periods of time, often with little hope of finding new jobs like their old ones.

government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers willingness to make loans

increase the money supply

reducing the money supply is

government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens and encourage economic growth

organization's plan for how it will raise and spend money during a given period of time

money owed by government spends more than the amount of money it raises through taxes

excess funding that occurs when government spends less than the amount of funds raised through taxes and fees

situation in which total revenues raised by taxes and fees equal total proposed government spending for the year.