-
Economics
- The study of how society
- chooses to employ resources
- to produce goods and services
- and distribute them for
- consumption among various
- competing groups and
- individuals.
-
macroeconomics
- The part of economics study
- that looks at the operation of a
- nation's economy as a whole.
-
microeconomics
- The part of economics study
- that looks at the behavior of
- people and organizations in
- particular markets.
-
resource development
- The study of how to increase
- resources and to create the
- conditions that will make better
- use of those resources.
-
invisible hand
- A phrase coined by Adam
- Smith to describe the process
- that turns self-directed gain into
- social and economic benefits
- for all.
-
capitalism
- An economic system in which
- all or most of the factors of
- production and distribution are
- privately owned and operated
- for profit.
-
state capitalism
- A combination of freer markets
- and some government control.
-
supply
- The quantity of products that
- manufacturers or owners are
- willing to sell at different prices
- at a specific time.
-
demand
- The quantity of products that
- people are willing to buy at
- different prices at a specific
- time.
-
market price
- The price determined by
- supply and demand.
-
perfect competition
- The degree of competition in
- which there are many sellers in
- a market and none is large
- enough to dictate the price
- of a product
-
monopolistic competition
- The degree of competition in
- which a large number of sellers
- produce very similar products
- that buyers nevertheless
- perceive as different
-
oligopoly
- A degree of competition in
- which just a few sellers
- dominate the market
-
monopoly
- A degree of competition in
- which only one seller controls
- the total supply of a product or
- service, and sets the price.
-
socialism
- An economic system based on
- the premise that some, if not
- most, basic businesses should
- be owned by the government
- so that profits can be more
- evenly distributed among the
- people.
-
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.
-
command economies
- Economic systems in which the
- government largely decides
- what goods and services will be
- produced, who will get them,
- and how the economy will grow.
-
mixed economies
- Economic systems in which
- some allocation of resources is
- made by the market and some
- by the government
-
gross domestic product
(GDP)
- The total value of final goods
- and services produced In a
- country in a given year.
-
gross output (GO)
- A measure of total sales
- volume at all stages of
- production.
-
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.
-
inflation
- A general rise in the prices of
- goods and services over time.
-
disinflation
- A situation in which price
- increases are slowing (the
- Inflation rate is declining).
-
deflation
- A situation in which prices are
- declining.
-
stagflation
- A situation when the economy
- Is slowing but prices are going
- up anyhow.
-
consumer price index (CPI)
- Monthly statistics that measure
- the pace of inflation or
- deflation.
-
core inflation
- CPI minus food and energy
- costs.
-
producer price index (PPI)
- An index that measures prices
- at the wholesale level.
-
business cycles
- The periodic rises and falls that
- occur in economies over time.
-
recession
- Two or more consecutive
- quarters of decline in the GDP.
-
depression
- A severe recession, usually
- accompanied by deflation.
-
fiscal policy
- The federal government's
- efforts to keep the economy
- stable by increasing or
- decreasing taxes or
- government spending.
-
national debt
- The sum of government deficits
- over time.
-
Keynesian economic theory
- The theory that a government
- policy of increasing spending
- could stimulate the economy in
- a recession.
-
monetary policy
- The management of the money
- supply and interest rates by the
- Federal Reserve.
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