Intro to Biz Chapter 1 terms

  1. GDP Gross domestic Product
    the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period
  2. Barter
    a system of exchange in which goods or services are traded directly for other goods and/or services without using money
  3. Market Price
    the price at which the quantity demanded is exactly equal to the quantity supplied
  4. Perfect or (Pure) Competition
    the market situation in which there are many buyers and sellers of a product, and no single buyer or seller(s) is powerful enough to affect the price of that product.
  5. Depression
    a severe recession that lasts longer than a recession
  6. Macroecomomics
    the study of the national economy and the global economy
  7. Microeconomics
    the study of the decisions made by individuals and business
  8. Invisible Hand
    a term created by Adam Smith to describe how an individuals own personal gain benefits other and a nations economy
  9. Recession
    two or more consecutive three-month periods of decline in a country's GDP
  10. Capitalism
    an economic system in which individuals own and operate the majority of businesses that provide goods and services
  11. Oligopoly
    a market (or industry) in which there are few sellers
  12. Monopoly
    a market with only one seller
  13. Natural Monopoly
    an industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the publics interest
  14. Economy
    the way in which people deal with the creation and distribution of wealth
  15. Profit
    what remains after all business expenses have been deducted from sales revenue
  16. Economics
    the study of how wealth is created and distributed
  17. Business
    the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs
  18. 4 Basic Economic questions
    • 1) What goods and services- and how much of each- will be produced?
    • 2) How will these goods and services be produced?
    • 3)For whom will these goods and services be produced?
    • 4)Who owns and who controls the major factors of production?
Card Set
Intro to Biz Chapter 1 terms
Chapter 1