Business 9

  1. brain drain
    the loss of the best and brightest people to other countires
  2. business cycle
    the periodic rises and falls that occur in economies over time
  3. capitalism
    economic system in which all or most of the factors of production and distribtuion are privately owned and operated for profit
  4. cammand economies
    economic systems in which the gvt largely decides what goods and services will be produced, who will get them, and how the economy will grow
  5. communism
    an economic and political system in which the govt makes almost all economic decisions and owns almost all the major factors of production
  6. consumer price index
    montly statistics that measure the pace of inflation or deflation
  7. deflation
    a situation in which prices are declining
  8. demand
    the quantity of products that people are willing to buy at different prices at a specific time
  9. depression
    a severe recession, usually accompanied by deflation
  10. disinflation
    a situation in which price increases are slowing (the inflation rate is declining)
  11. 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 indviduals
  12. fiscal policy
    the federal govt's efforts to keep the economy stable by increasing or decreasing taxes and/or govt spending
  13. free market economies
    economic system in which the market largely determines what goods and services get produced, who gets them, and how the economy grows
  14. gross domestic product (GDP)
    the total value of final goods and services produced in a country in a given year
  15. inflation
    a general rise in the prices of goods and services over time
  16. invisible hand
    phrase coined by adam smith to describe the process that turns self-directed gain into social and economic benefits for all
  17. Keynesian economic theory
    the theory that a govt policy of increasing spending and cutting taxes could stimulate the economy in a recession
  18. macroeconomics
    the part of economics study that looks at the operation of a nations economy as a whole
  19. market price
    the price determined by supply and demand
  20. micreconomics
    the part of economics study that looks at the behavior of people and organizations in particualr markets
  21. mixed economies
    economic systems in which some allocation of resources is determined by the market and some by the govt
  22. monetary policy
    the management of the money supply and interest rates by the federal reserve bank
  23. monopolistic competition
    the degree of competiotion in which a large number of sellers produce similar products that buyers nevertheless perceive as different
  24. monopoly
    degree of competition in which only one seller controls the total supply of a product or service, and sets the price
  25. national debt
    the sum of gevt deficits over time
  26. oligopoly
    degree of competition in which just a few sellers dominate the market
  27. perfect competition
    the degree of competition in which there are many sellers in a market and none is able to dictate the price of a product
  28. producer price index (PPI)
    an index that measures prices at the wholesale level
  29. recession
    two or more consecutive quarters of decline in the GDP
  30. resource development
    the study of how to increase resources and to create the conditions that will make better use of those resources
  31. 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
  32. stagflation
    a situation when the economy is slowing but prices are going up anyhow
  33. supply
    the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
  34. unemployment rate
    the number of civilians who are at least 16 years old who are unemployed and tried to find a job within the prior four weeks
Card Set
Business 9