Glossary of CHAPTER 1 2

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situation in which quantity supplied exceeds quantity demanded
increse in the amount of goods and servies produced by a nation's resources
fiscal policies
gov economic polices taht determine how the gov collects and spends it revenue
law of demand
principle that buyers will purchase more of a product as its price drops and less as its price increases
the willingness and ability of buyers to purchase a good or service
information resources
data andd other info used by businesses
budget deficit
situation in which a gov body spends more money than it takes in
gross domestic product
the value of all goods and servie produced in a yera by a nation' economy through domestic factors of production
gross national product
the value of all goods and services produced by an economic system in a year regardless of where the factors of production are located
real gross national product
gross national product adjusted for inflation and changes in the value of a country's currency
private property rights
the right to buy, own, use, and sell almost any form of property
pure competition
market or industry characterized by numerous small firms producing an identical product
mixed market economy
economic system featuring characteristics of both planned and market economics
monetary policies
gov economic policies that determine the size of a nation's money supply
knowledge workers
skilled employees in high tech industries
demand and supply schedule
assessment of the relationships between diff levels of demand and supply at dif price levels
the funds needed to create and operate a business enterprise
period characterized by decreases in employment, income, and production
economic system
a nation's system for allocating its resources among its citizens
market economy that provides for private owndership of production and encourages entrepreneurship by offering profits as an incentive
planned economic sysytem in which the gov owns and operates only selected major sources of production
mechanism for exchange between buyers and seller of a particular good or service
planned economy
economy that relies on a centralized gov to control all or most factors of porduction and to make all ormost production and alllocation decisions
supply curve
graphs showing how many units of a product will be supplied at diff't prices
level of joblessness among people actively seeking work
market or industry in which there is only oe producer, which can therefore set the prices of its products
law of supply
principle that porducers will offer more of a product for sale as its price rises and less as its price drops
phenomenon of widespread price increases throughout an economic system
an organization that provides tgoods or services to earn profits
the difference between a business's revenues and its expenses
demand curve
graphs showing how many units of a product will be demanded at diff't prices
vying among businesses for the same resources or customers
market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products
process of converting gov enterpirses into privatley owned companies
the physical and mental capabilities of people as they contribute to economic production
market economy
economy in which individuals control production and allocation odesicions through supply and demand
national debt
total amount that a nation owes its creditors
measure of economic growth that compares how much a system produces with the resources needed to produce it
input market
market in which firms buy resources from supplier households
monopolistic competition
market or industry characterized by numerious buyers and relativerly numerous sellers trying to differentiate their products from those of competitors
ondition in which the balance between the money available in an economy and the goods produced in it are growing at about the same rate
private enterprise
economic system that allows individuals to pursue their own interest without undue gov restriction
the wililngness and ability of producers to offer a good or service for sale
output market
market in which supply goods and servies in response to demand on the part of households
factors of production
resources used in the production of goods and services-natural resources, labor, capital, and entrepreneurs
physical resources
tangible things organizations use in the conduct of their business
market price
profit-maximizing price at which the quantitiy fo good demanded and the quantity of goods supplied are equal
natural monopoly
industry in which one company can most efficiently supply all needed goods or services
situation in which quantity demanded exceeds quantity supplied
partiularly severe and long lasting recession

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