Business: Chapter 1

  1. Economic Stablization Act
    a $700 billion bailout plan created to stabilize the nation's economy and restore confidence in the banking and financial industries
  2. Free Enterprise
    the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it
  3. Cultural (or workplace) Diversity
    differences among people in a work force owing to race, ethnicity, and gender
  4. Business
    the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs
  5. Profit
    what remains after all business expenses have been deducted from sales revenue
  6. Stockholders
    all the different people or groups of people who are affected by the policies and decisions made by an organization
  7. Economic
    the study of how wealth is created and distributed
  8. Microeconomics
    the study of the decisions made by individuals and businesses
  9. Macroeconomics
    the study of the national economy and the global economy
  10. Economy
    the way in which people deal with the creation and distribution of wealth
  11. Factors of Productions
    resources used to produce goods and services
  12. Entrepreneur
    a person who risks time, effort, and money to start and operate a business
  13. Capitalism
    an economic system in which individuals own and operate the majority of businesses that provide goods and services
  14. Invisible Hand
    a term created by Adam Smith to describe how an individual's own personal gain benifits others and a nation's economy
  15. Market Economy
    an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices
  16. Mixed Economy
    an economy that exhibits elements of both capitalism and socialism
  17. Consumer Products
    goods and services purchased by individuals for personal consumption
  18. Command Economy
    an economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production
  19. Productivity
    the average level of output per worker per hour
  20. Gross Domestic Product (GDP)
    the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period
  21. Inflation
    a general rise in the level of prices
  22. Deflation
    a general decrease in the level of prices
  23. Consumer Price Index (CPI)
    a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
  24. Producer Price Index (PPI)
    an index that measures prices at the wholesale level
  25. Business Cycle
    the recurrence of periods of growth and recession in a nation's economic activity
  26. Recession
    two or more consecutive three-month periods of decline in a country's GDP
  27. Depression
    a severe recession that lasts longer than a recession
  28. Monetary Policies
    federal reserve decisions that determine the size of the supply of money in the nation and the level of interest rates
  29. Fiscal Policy
    government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
  30. Federal Deficit
    a shortfall created when the federal government spends more in a fiscal year than it receives
  31. National Debt
    the total of all federal deficits
  32. Competition
    rivalry among businesses for sales to potential customers
  33. Perfect (or pure) Competition
    the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product
  34. Supply
    the quantity of a product that producers are willing to sell at each of various prices
  35. Demand
    the quantity of a product that buyers are willing to purchase at each of various prices
  36. Market Price
    the price at which that quantity demanded is exactly equal to the quantity supplied
  37. Monopolistic Competition
    a market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors
  38. Product Differentiation
    the process of developing and promoting differences between one's products and all similar products
  39. Oligopoly
    a market (or industry) in which there are few sellers
  40. Monopoly
    a market (or industry) with only one seller
  41. Natural Monopoly
    an industry requiring huge investments in captial and within which any duplication of facilities would be wasteful and thus not in the public interest
  42. Standard of Living
    a loose, subjective measure of how well off an indivdual or a society is mainly in terms of want satisfaction through goods and services
  43. Barter
    a system of exchange in which goods or services are traded directly for other goods and/or services without using money
  44. Domestic System
    a method of manufacturing in which an entrepreneur distriburtes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur
  45. Factory System
    a system of manufacturing in which all the materials, machinery, and workers reuiqred to manufacture a product are assembled in one place
  46. Specialization
    the separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
  47. E-Business
    the organized effort of individuals to produc and sell through the internet, for a profit, the products and services that satisfy society's needs
  48. Sustainability
    meeting the needs of the present without comproming the ability of future generations to meet their own needs
Card Set
Business: Chapter 1
Business: Chapter 1