Business Chapter 2 Flash Cards

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  1. Economics
    • The study of how society
    • chooses to employ resources
    • to produce goods and services
    • and distribute them for
    • consumption among various
    • competing groups and
    • individuals.
  2. macroeconomics
    • The part of economics study
    • that looks at the operation of a
    • nation's economy as a whole.
  3. microeconomics
    • The part of economics study
    • that looks at the behavior of
    • people and organizations in
    • particular markets.
  4. resource development
    • The study of how to increase
    • resources and to create the
    • conditions that will make better
    • use of those resources.
  5. invisible hand
    • A phrase coined by Adam
    • Smith to describe the process
    • that turns self-directed gain into
    • social and economic benefits
    • for all.
  6. capitalism
    • An economic system in which
    • all or most of the factors of
    • production and distribution are
    • privately owned and operated
    • for profit.
  7. state capitalism
    • A combination of freer markets
    • and some government control.
  8. supply
    • The quantity of products that
    • manufacturers or owners are
    • willing to sell at different prices
    • at a specific time.
  9. demand
    • The quantity of products that
    • people are willing to buy at
    • different prices at a specific
    • time.
  10. market price
    • The price determined by
    • supply and demand.
  11. perfect competition
    • The degree of competition in
    • which there are many sellers in
    • a market and none is large
    • enough to dictate the price
    • of a product
  12. monopolistic competition
    • The degree of competition in
    • which a large number of sellers
    • produce very similar products
    • that buyers nevertheless
    • perceive as different
  13. oligopoly
    • A degree of competition in
    • which just a few sellers
    • dominate the market
  14. monopoly
    • A degree of competition in
    • which only one seller controls
    • the total supply of a product or
    • service, and sets the price.
  15. socialism
    • An economic system based on
    • the premise that some, if not
    • most, basic businesses should
    • be owned by the government
    • so that profits can be more
    • evenly distributed among the
    • people.
  16. free-market economies
    • Economic systems in which the
    • market largely determines what
    • goods and services get
    • produced, who gets them, and
    • how the economy grows.
  17. command economies
    • Economic systems in which the
    • government largely decides
    • what goods and services will be
    • produced, who will get them,
    • and how the economy will grow.
  18. mixed economies
    • Economic systems in which
    • some allocation of resources is
    • made by the market and some
    • by the government
  19. gross domestic product
    (GDP)
    • The total value of final goods
    • and services produced In a
    • country in a given year.
  20. gross output (GO)
    • A measure of total sales
    • volume at all stages of
    • production.
  21. unemployment rate
    • The number of civilians at least
    • 16 years old who are
    • unemployed and tried to find a
    • Job within the prior four weeks.
  22. inflation
    • A general rise in the prices of
    • goods and services over time.
  23. disinflation
    • A situation in which price
    • increases are slowing (the
    • Inflation rate is declining).
  24. deflation
    • A situation in which prices are
    • declining.
  25. stagflation
    • A situation when the economy
    • Is slowing but prices are going
    • up anyhow.
  26. consumer price index (CPI)
    • Monthly statistics that measure
    • the pace of inflation or
    • deflation.
  27. core inflation
    • CPI minus food and energy
    • costs.
  28. producer price index (PPI)
    • An index that measures prices
    • at the wholesale level.
  29. business cycles
    • The periodic rises and falls that
    • occur in economies over time.
  30. recession
    • Two or more consecutive
    • quarters of decline in the GDP.
  31. depression
    • A severe recession, usually
    • accompanied by deflation.
  32. fiscal policy
    • The federal government's
    • efforts to keep the economy
    • stable by increasing or
    • decreasing taxes or
    • government spending.
  33. national debt
    • The sum of government deficits
    • over time.
  34. Keynesian economic theory
    • The theory that a government
    • policy of increasing spending
    • could stimulate the economy in
    • a recession.
  35. monetary policy
    • The management of the money
    • supply and interest rates by the
    • Federal Reserve.

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Author:
davecowman
ID:
334233
Filename:
Business Chapter 2 Flash Cards
Updated:
2017-09-13 16:01:50
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Chapter 2
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