BusinessInActionChapter2

The sum total of all the economic activity within a given region.

The study of how a society uses its scarce resources to produce and distribute goods and services

The study of how consumers, busineses, and industries collectively determine the quantity of goods and services demanded and supplied at different prices.

The study of big picture" issues in an economy, including competitive behavior among firms, the effect of government polices, and overall resource allocation issues.

Land, forests, minerals, water and other tangible assets usable in their natural state.

All the people who work in an organization or on its behalf.

The funds that finance the operations of a business as well as the physical, human-made elements used to produce goods and services, such as factories and computers.

The combination of innovation, initiative, and willingness to take the risks required to create and operate new businesses.

Expertise gained through experience or association.

The value of the most appealing alternative not chosen.

The policies that define a society's particular economic structure; the rules by which a society allocates economic resources.

Economic system in whcih decisions about what to produce and in what quantities are decided by the market's buyers and sellers.

Economic system based on economic freedom and competition.

Economic system in which the government controls most of the factors of production and regulates their allocation.

Economic system characterized by public ownership and operation of key industries combined with private ownership and operation of less-vital industries.

A government's takeover of selected companies or industries.

Turning over services once performed by the government and allowing private businesses to perform them instead.

Buyer's willingless and ability to purchase products at various price points.

A specific quantity of a product that the seller is able and willing to provide at various prices.

A graph of the quantities of a product that buyers will purchase at various prices.

A graph of the quantities of a product that sellers will offer for sale, regardless of demand, at various prices.

The point at which quantity supplied equals quantity demanded.

Rivalry among businesses for the same customers?

A situation in which so many buyers and sellers exist that no single buyer or seller can individually influence market prices.

A situation in which one company dominates a market to the degree that it can control prices.

A situation in which many sellers differentiate their products from those of competitors in at least some small way.

A market situation in which a very small number of suppliers, sometimes only two, provide a particular good or service.

A period during which national income, employment, and production all fall; defined as at least six months of decline in the GDP.

Fluctuations in the rate of growth that an economy experiences over a period of several years.

The portion of the labor force (everyone over 16 who has or is looking for a job) currently without a job.

An economic condition in which prices rise steadily throughout the economy.

An economic condition in which prices fall steadily throughout the economy.

Relying more on laws and policies than on market forces to govern economic activity.

Removing regulations to allow the market to prevent excesses and correct itself over time.

Government policy and actdions taken by the Federal Reserve Board to regulate the nation's money supply.

Use of government revenue collection and spending to influence the business cycles.

Statistics that measure the performance of the economy.

A montly statistic that measures changes in the prices of a representative collective of consumer goods and services.

A statistical measure of price trends at the producer and wholesaler levels?

The value of all the final goods and services produced by businesses located within a nation's borders; excludes outputs from overseas operations of domestic companies.