front 1 Aggregate Output | back 1 the total quantity of goods and services produced by an economic system during a given period |
front 2 Balance of Trade | back 2 the economic value of all the products that a country exports minus the economic value of the products it imports |
front 3 Business | back 3 organization that provides good or services to earn profits |
front 4 Business Cycle | back 4 short-term pattern of economic expansions and contractions |
front 5 Capital | back 5 funds needed to create and operate a business enterprise |
front 6 Capitalism | back 6 system that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive |
front 7 Communism | back 7 political system in which the government owns and operates all factors of production |
front 8 Competition | back 8 vying among businesses for the same resources or customers |
front 9 Consumer Price Index (CPI) | back 9 a measure of the prices of typical products purchased by consumers living in urban areas |
front 10 Demand | back 10 the willingness and ability of buyers to purchase a good or service |
front 11 Demand and Supply Schedule | back 11 assessment of the relationships among different levels of demand and supply at different price levels |
front 12 Demand Curve | back 12 graph showing how many units of a product will be demanded (bought) at different prices |
front 13 Depression | back 13 a prolonged and deep recession |
front 14 Domestic Business Environment | back 14 the environment in which a firm conducts its operations and derives its revenues |
front 15 Economic Environment | back 15 relevant conditions that exist in the economic system in which a company operates |
front 16 Economic Indicators | back 16 a statistic that helps assess the performance of an economy |
front 17 Economic System | back 17 a nation's system for allocating its resources among its citizens |
front 18 Entrepreneur | back 18 individual who accepts the risks and opportunities involved in creating and operating a new business venture |
front 19 External Environment | back 19 everything outside an organization's boundaries that might affect it |
front 20 Factors of Production | back 20 resources used in the production of goods and services labor, capital, entrepreneurs, physical resources, and information resources |
front 21 Fiscal Policies | back 21 policies used by a government regarding how it collects and spends revenue |
front 22 Global Business Environment | back 22 the international forces that affect a business |
front 23 GDP Per Capita | back 23 gross domestic product divided by total population |
front 24 Gross Domestic Product (GDP) | back 24 total value of all goods and services produced within a given period by a national economy through domestic factors of production |
front 25 Gross National Product (GNP) | back 25 total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located |
front 26 Inflation | back 26 occurs when widespread price increases occur throughout an economic system |
front 27 Information Resources | back 27 data and other information used by businesses |
front 28 Labor (Human Resources) | back 28 physical and mental capabilities of people as they contribute to economic production |
front 29 Law of Demand | back 29 principle that buyers will purchase (demand) more of a product as its price drops and less as its price increases |
front 30 Law of Supply | back 30 principle that producers will offer (supply) more of a product for sale as its price rises and less as its price drops |
front 31 Market | back 31 mechanism for exchange between buyers and sellers of a particular good or service |
front 32 Market Economy | back 32 economy in which individuals control production and allocation decisions through supply and demand |
front 33 Market Price (Equilibrium Price) | back 33 profit-maximizing price at which the quantity of goods demanded and the quantity of good supplied are equal |
front 34 Mixed Market Economy | back 34 economic system featuring characteristics of both planned and market economies |
front 35 Monetary Policies | back 35 policies used by a government to control the size of its money supply |
front 36 Monopolistic Competition | back 36 market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors |
front 37 Monopoly | back 37 market or industry in which there is only one producer that can therefore set the prices of its products |
front 38 National Debt | back 38 the amount of money the government owes its creditors |
front 39 Natural Monopoly | back 39 industry in which one company can most efficiently supply all needed goods or services |
front 40 Nominal GDP | back 40 GDP measured in current dollars or with all components valued at current prices |
front 41 Oligopoly | back 41 market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products |
front 42 Perfect Competition | back 42 market or industry characterized by numerous small firms producing an identical product |
front 43 Physical Resources | back 43 tangible items that organizations use in the conduct of their businesses |
front 44 Planned Economy | back 44 economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions |
front 45 Political-Legal Environment | back 45 the relationship between business and government |
front 46 Private Enterprise | back 46 economic system that allows individuals to pursue their own interests without undue governmental restriction |
front 47 Privatization | back 47 process of converting government enterprises into privately owned companies |
front 48 Productivity | back 48 a measure of economic growth that compares how much a system produces with the resources needed to produce it |
front 49 Profits | back 49 difference between a business's revenues and its expenses |
front 50 Purchasing Power Parity | back 50 the principle that exchange rates are set so that the prices of similar products in different countries are about the same |
front 51 Real GDP | back 51 GDP adjusted to account for changes in currency values and price changes |
front 52 Recession | back 52 a period during which aggregate output, as measured by GDP, declines |
front 53 Shortage | back 53 situation in which quantity demanded exceeds quantity supplied |
front 54 Socialism | back 54 planned economic system in which the government owns and operates only selected major sources of production |
front 55 Sociocultural Environment | back 55 the customs, mores, values, and demographic characteristics of the society in which an organization functions |
front 56 Stability | back 56 condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate |
front 57 Stabilization Policy | back 57 government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices |
front 58 Standard of Living | back 58 the total quantity and quality of goods and services people can purchase with the currency used in their economic system |
front 59 Supply | back 59 the willingness and ability of producers to offer a good or service for sale |
front 60 Supply Curve | back 60 graph showing how many units of a product will be supplied (offered for sale) at different prices |
front 61 Surplus | back 61 situation in which quantity supplied exceeds quantity demanded |
front 62 Technological Environment | back 62 all the ways by which firms create value for their constituents |
front 63 Unemployment | back 63 the level of joblessness among people actively seeking work in an economic system |