Term
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Definition
| The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs |
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Term
| A business must combine what four resources effectively in order to be successful? |
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Definition
- Human Resources
- Material Resources
- Informational Resources
- Financial Resources
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Term
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Definition
| 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 |
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Term
Manufacturing Business
vs.
Service Business |
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Definition
- Process various materials into tangible goods, such as delivery trucks, towels, and computers
- Produce services, such as haircuts, legal advice, or tax preparation
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Term
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Definition
| The study of how wealth is created and distributed |
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Term
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Definition
| Is an economic system in which indiciduals own and operate the majority of businesses that provide goods and services |
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Term
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Definition
| 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 |
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Term
| Important Economic Indicators that Measure a Nation's Economy |
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Definition
- Gross domestic product (GDP)
- Inflation
- Deflation
- Unemployment Rate
- Consumer price index (CPI)
- Producer price index (PPI)
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Term
| Gross Domestic Product (GDP) |
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Definition
| The total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period |
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Term
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Definition
| A general rise in the level of prices |
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Term
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Definition
| A general decrease in the level of prices |
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Term
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Definition
| The percentage of a nation's labor force unemplyed at any time |
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Term
| Consumer price index (CPI) |
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Definition
| A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area |
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Term
| Producer price index (PPI) |
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Definition
| An index that measures prices that producers receive for their finished goods |
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Term
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Definition
| Essentially a rivalry amoung businesses for sales to potential customers |
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Term
| The four types of competition: |
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Definition
- Perfect
- Monopolistic
- Oligopoly
- Monopoly
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Term
| Perfect (or pure) Competition |
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Definition
| 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 |
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Term
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Definition
| Is a market situation in which there are many buyers along with a relatively large number of sellers |
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Term
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Definition
| Is a market (or industry) situation in which there are few sellers |
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Term
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Definition
| Is a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry |
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Term
| Discuss what you must do to be successful in the world of business |
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Definition
- Develop a plan, or a road map, that ensures that you have the necessary skills and the knowledge the job requires to become a better employee or manager
- By studying business, one may also decide to start their own business and become a better consumer and investor
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Term
| Potential Risks and Rewards of a Business |
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Definition
- Profit earned by a business becomes the property of its owners
- Profit is the reward business owners receive for producing goods and services that customes want
- Risk for the owners is that they have to pay employees, suppliers, and lenders before they pay themselves
- Risk of losing whatever they invested into the business - money, effort, and time
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Term
| Summarize the factors that affect the business environment and the challenges that American businesses will encounter in the future |
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Definition
- The way a business operates is affected by the competitive environment, global ", technological ", and economic environment
- Because of this business has a number of opportunities for improvement and challenges for the future
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Term
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Definition
| Is what remains after all business expenses have been deducted from sales revenue |
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Term
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Definition
| Is used to describe all the different people or groups of people who are affected by the policies, decisions, and activities made by an organization |
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Term
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Definition
| The study of the decisions made by indiciduals and businesses |
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Term
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Definition
| The study of the national economy and the global economy |
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Term
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Definition
| The way in which people deal with the creation and distribution of wealth |
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Term
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Definition
| Resources used to produce goods and services |
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Term
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Definition
| A person who risks time, effort, and money to start and operate a business |
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Term
What are the four basic economic questions that economic systems seek to address? |
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Definition
- What goods and services--and how much of each--will be produced?
- How will these goods and services be produced?
- For whom will these goods and services be produced?
- Who owns and who controls the major factors of production?
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Term
What are the distinguishing characteristics of capitalism in the United States? |
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Definition
- Businesses provides goods and services
- Government collects taxes
- Household makes the purchases
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Term
| Two types of Command Economies |
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Definition
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Term
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Definition
- The key industriesare owned and controlled by the government
- What and how to produce it are determined in accordance with national goals (based on projected needs and availability of resources)
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Term
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Definition
- North Korea and Cuba
- Emphasis is placed on the production of goods the government needs rather than the products that consumers may need
- Frequent shortages of consumer goods
- Workers have little choice of a job
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Term
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Definition
| The average level of output per worker per hour |
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Term
Why is it important to occasionally evaluate a nation’s economic health? |
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Definition
| Because it can be used to compare one economic statistic over different periods of time |
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Term
| The seven common measures used to evaluate a nation's economic health |
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Definition
- Balance of trade
- Bank credit
- Corporate profits
- Inflation rate
- National income
- New housing starts
- Prime investment rate
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Term
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Definition
| The total value of a nation's exports minus the total value of its imports over a specific period of time |
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Term
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Definition
| A statistic that measures the lending activity of commercial financial institutions |
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Term
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Definition
| The total amount of profits made by corporations over selected time periods |
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Term
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Definition
| An economicn statistic that tracks the increase in prices of goods and services over a period of time. This measure is usually calculated on a monthly or annual basis. |
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Term
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Definition
| The total income earned by various segments of the population, including employees, self-employed individuals, corportations, and other types of income |
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Term
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Definition
| The total number of the new homes started during a specific period of time |
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Term
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Definition
| The lowest interest rate that banks charge their most credit-worthy customers |
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Term
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Definition
| The recurrence of periods of growth and recession in a nation's economic activity |
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Term
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Definition
| Two or more consecutive three-month periods of a decline in a country's GDP |
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Term
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Definition
| A severe recession that lasts longer than a typical recession |
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Term
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Definition
| Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates |
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Term
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Definition
| The government can influence the amount of savings and expenditures by altering the tax structure and changing the levels of government spending |
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Term
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Definition
| A shortfall created when the federal government spends more in a fiscal year than it receives |
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Term
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Definition
| The total of all federal deficits |
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Term
Supply
(Perfect Competition) |
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Definition
| The quantity of a product that producers are willing to purchase at each of various prices |
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Term
Demand
(Perfect Competition) |
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Definition
| The quantity of a product that buyers are willing to purchase at each of various prices |
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Term
Equilibrium (Market) Price
(Perfect Competition) |
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Definition
| The price at which the quantity demanded is exactly equal to the quantity supplied |
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Term
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Definition
| A loose, subjective measure of how well off an individual or society is, mainly in terms of want satisfaction through goods and services |
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Term
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Definition
| A system of exchange in which goods or services are traded directly for other goods or services without using money |
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Term
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Definition
| 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 |
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Term
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Definition
| A system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place |
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Term
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Definition
| The seperation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals |
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Term
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Definition
lMaintaining U.S. competitiveness in a globalized business environment.
lConserving natural resources and the environment.
lChanging demographics worldwide.
lCultural diversity
lTerrorism and extremism in the U.S. |
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