1. a system of exchange in which goods or services are traded directly for other goods or services without using money
  2. the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society’s needs
  3. the recurrence of periods of growth and recession in a nation’s economic activity
  4. an economic system in which individuals own and operate the majority of businesses that provide goods and services
  5. 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
  6. rivalry among businesses for sales to potential customers
  7. a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
  8. goods and services purchased by individuals for personal consumption
  9. differences among people in a workforce owing to race, ethnicity, and gender
    cultural (or workplace) diversity
  10. a general decrease in the level of prices
  11. the quantity of a product that buyers are willing to purchase at each of various prices
  12. a severe recession that lasts longer than a typical recession
  13. a method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur
    domestic system
  14. the organized effort of individuals to produce and sell through the Internet, for a profit, the products and services that satisfy society’s needs
  15. the study of how wealth is created and distributed
  16. the way in which people deal with the creation and distribution of wealth
  17. a person who risks time, effort, and money to start and operate a business
  18. resources used to produce goods and services
    factors of production
  19. a system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place
    factory system
  20. a shortfall created when the federal government spends more in a fiscal year than it receives
    federal deficit
  21. government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
    fiscal policy
  22. 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
    free enterprise
  23. the total dollar value of all goods and services produced by all people within the boundaries of a country during a one–year period
    gross domestic product (GDP)
  24. a general rise in the level of prices
  25. a term created by Adam Smith to describe how an individual’s personal gain benefits others and a nation’s economy
    invisible hand
  26. the study of the national economy and the global economy
  27. an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices
    market economy
  28. the price at which the quantity demanded is exactly equal to the quantity supplied
    market price
  29. the study of the decisions made by individuals and businesses
  30. an economy that exhibits elements of both capitalism and socialism
    mixed economy
  31. Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates
    monetary policies
  32. 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
    monopolistic competition
  33. a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry
  34. the total of all federal deficits
    national debt
  35. an industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the public interest
    natural monopoly
  36. a market (or industry) in which there are few sellers
  37. 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
    perfect (or pure) competition
  38. an index that measures prices that producers receive for their finished goods
    producer price index (PPI)
  39. the process of developing and promoting differences between one’s products and all similar products
    product differentiation
  40. the average level of output per worker per hour
  41. what remains after all business expenses have been deducted from sales revenue
  42. two or more consecutive three–month periods of decline in a country’s GDP
  43. an economy in which more effort is devoted to the production of services than to the production of goods
    service economy
  44. the separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
  45. all the different people or groups of people who are affected by the policies and decisions made by an organization
  46. a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services
    standard of living
  47. the quantity of a product that producers are willing to sell at each of various prices
  48. meeting the needs of the present without compromising the ability of future generations to meet their own needs
  49. the percentage of a nation’s labor force unemployed at any time
    unemployment rate
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