How Econonmics Affects business
Terms
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- national debt
- the sum or fovernment deficits over time
- gross domestic product (GDP)
- the total value of final goods and services produced in a country in a given year
- perfect competition
- the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product
- command economies
- economic systems in which the government largely decides what goods and services will be produces, who will get them, and how the economy will grow
- 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
- socialism
- an economic system based on th premise that some, if not most, basic businesses should be owned by the government so that profits can be evenly distributed among the people
- inflation
- a general rise in the prices of goods and services over time
- resource development
- the study of how to increase reasources and to create the conditions that will make better use of those resources
- monopoly
- a merkt in which there is only one seller for a product of service
- mixed economies
- economic systems in which some allocation of resources is made by the market and some by the government
- business cycles
- the periodic rises and falls that occur in all economies over time
- capitalism
- an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
- Consumer Price Index (CPI)
- monthly statistics that measure the pace of inflation or deflation
- monetary policy
- the management of the money supply and interest rates
- monopolistic competition
- the market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different
- macroeconomics
- the part of economics that looks at the operation of a nation's economy as a whole
- communism
- an economic and political system in which the state (the government) makes almost all economic decisions and owns almost all the major factors of profuction
- 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
- microeconomics
- the part of economics that looks at the behavior of people and organizations in particular markets
- disinflation
- a situation in which price increases are slowing (the inflation rate is declining).
- Producer Price Index (PPI)
- An index that measures prices at the wholesale level
- Depression
- a severe recession
- supply
- the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
- fiscal policy
- the federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending
- oligopoly
- a form of competition in which just a few sellers dominate the market
- recession
- two or more consecutive quarters of decline in the GDP
- Economics
- the study of how society chooses to employ resources to produce goods and services and consumption among various competing groups and individuals
- market price
- the price is determined by supply and demand