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ch2

Terms

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depression
a se vere recessio usually accompanied by deflation
socialism
occurs wen there is only one seller for a product or service
macroeconomics
operations of a nations economy as a whole
command economies
government largely decides what goods and services will be produced, who will get them, and how the economy will grow
recession
is two or more consecutive quarters off decline in the GDP
microeconomics
behavior of people and its organizations in particuler projects
resource development
study of how o increase resources and to create the conditions that will make better use of those resources
free market economies
market largely determines what goods and services get ptoduced, who gets them, and how the economy grows
monopolistic competition
large number of sellers produce products that are very similar but are perceived by buyers as different
fsical policy
federal governments policy to keep the economy stable by increasing or decreasing taxes or government spending
brain drain
the lost of the best and brightest peopleto other countries
deflation
prices are declining
national debt
sum of governement deficits over time
supply
amount of goods being sold
prdoucer price index
measure the price at the whole sale level
disinflation
describes a situation in which price increases are slowing
gross domestic product
total value of final goods and services produced in a country in a given year
perfect competition
many sellers and no seller is large enough to dictate the price of a product
unemployment rate
number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks
monetary policy
management of the money supply and ineterest rates
monopoly
only one seller for a product or service
invisible hand
turns self-directed gain into social and economics benefits for all
mixed economies
some allocation of resources is made by the market and some by the government
capitalsim
economic system in which all or most of the factors of production and distribution are privatel owned and operated for profit
market price
a
oligopoly
form of competition in which just a few sellers dominate a market
consumer price index
monthly statisics that measure the price of inflatio or deflation
inflaion
general rise in the prices of goods and services over time
business cycles
periodic rise and fall in economics over time

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