Intro to Biz Chapter 1 terms
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GDP Gross domestic Product
the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period
a system of exchange in which goods or services are traded directly for other goods and/or services without using money
the price at which the quantity demanded is exactly equal to the quantity supplied
Perfect or (Pure) Competition
the market situation in which there are many buyers and sellers of a product, and no single buyer or seller(s) is powerful enough to affect the price of that product.
a severe recession that lasts longer than a recession
the study of the national economy and the global economy
the study of the decisions made by individuals and business
a term created by Adam Smith to describe how an individuals own personal gain benefits other and a nations economy
two or more consecutive three-month periods of decline in a country's GDP
an economic system in which individuals own and operate the majority of businesses that provide goods and services
a market (or industry) in which there are few sellers
a market with only one seller
an industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the publics interest
the way in which people deal with the creation and distribution of wealth
what remains after all business expenses have been deducted from sales revenue
the study of how wealth is created and distributed
the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs
4 Basic Economic questions
- 1) What goods and services- and how much of each- will be produced?
- 2) How will these goods and services be produced?
- 3)For whom will these goods and services be produced?
- 4)Who owns and who controls the major factors of production?
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