Term
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Definition
| -- Any activity that seeks to provide goods and services to others while operating at a profit. |
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Term
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Definition
| -- A person who risks time and money to start and manage a business. |
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Definition
| -- The total amount of money a business takes in during a given period by selling goods and services. |
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Term
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Definition
| -- The amount of money a business earns above and beyond what it spends for salaries and other expenses. |
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Term
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Definition
| -- Occurs when a business’ expenses are more than its revenues. |
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Term
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Definition
| -- The general well-being of a society in terms of its political freedom, natural environment, education, healthcare, safety, amount of leisure and rewards that add to personal satisfaction. |
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Term
| FIVE FACTORS of PRODUCTION |
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Definition
1.Land
2.Labor
3.Capital
4.Entrepreneurship
5.Knowledge |
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Term
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Definition
-- Everything from phones to copiers and the various software programs that make businesses more effective, efficient and productive. |
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Term
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Definition
| -- Producing the desired result. |
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Term
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Definition
| -- Producing goods and services using the least amount of resources. |
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Term
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Definition
| -- The amount of output you generate given the amount of input (example: hours you work). |
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Term
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Definition
| -- The study of how society employs resources to produce goods and services for consumption among various groups and individuals. |
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Term
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Definition
-- Concentrates on the operation of a nation’s economy as a whole. |
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Term
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Definition
| -- Concentrates on the behavior of people and organizations in markets for particular products or services. |
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Term
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Definition
| -- The study of how to increase resources and create conditions that will make better use of them. |
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Term
THOMAS MALTHUS and
the DISMAL SCIENCE |
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Definition
•Malthus believed that if the rich had most of the wealth and the poor had most of the population, resources would run out.
•This belief led the writer Thomas Carlyle to call economics “The Dismal Science.” |
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Term
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Definition
| -- All or most of the land, factories and stores are owned by individuals, not the government, and operated for profit. |
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Term
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Definition
| -- An economic system based on the premise that some basic businesses, like utilities, should be owned by the government in order to more evenly distribute profits among the people. |
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Term
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Definition
| -- An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production. |
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Term
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Definition
| -- Some allocation of resources is made by the market and some by the government. |
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Term
•Gross Domestic Product (GDP) |
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Definition
| -- Total value of final goods and services produced in a country in a given year. As long as a company is within a country’s border, their numbers go into the country’s GDP (even if they are foreign-owned). |
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Term
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Definition
| -- Periodic rises and falls that occur in economies over time. |
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Term
•Four Phases of Long-Term Business Cycles:
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Definition
1.Economic Boom
2.Recession – Two or more consecutive quarters of decline in the GDP.
3.Depression – A severe recession.
4.Recovery – When the economy stabilizes and starts to grow. This leads to an Economic Boom. |
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Term
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Definition
| -- The federal government’s efforts to keep the economy stable by increasing or decreasing taxes or government spending. |
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Term
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Definition
| -- The management of the money supply and interest rates by the Federal Reserve Bank (the Fed). |
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Term
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Definition
| -- Buying products from another country. |
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Term
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Definition
| -- Selling products to another country. |
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Term
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Definition
| -- A country should sell the products it produces most efficiently and buy from other countries the products it cannot produce as efficiently. |
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Term
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Definition
| -- A country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. |
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Term
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Definition
| -- The total value of a nation’s exports compared to its imports measured over time. |
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Term
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Definition
| -- When the value of a country’s exports is more than that of its imports. |
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Term
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Definition
| -- When the value of a country’s exports is less than that of its imports. |
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Term
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Definition
| -- The value of one nation’s currency relative to the currencies of other countries. |
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Term
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Definition
| -- Lowers the value of a nation’s currency relative to others. |
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Term
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Definition
| -- Complex form of bartering in which several countries each trade goods or services for other goods or services. |
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Term
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Definition
| -- The use of government regulations to limit the import of goods and services. |
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Term
•Tariffs -- Taxes on imports. |
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Definition
•Two kinds of tariffs:
-Protective – Raise the retail price of imports so domestic goods are competitively priced.
-Revenue – Raise money for governments. |
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