sustainability

meeting the needs of the present without compromising the ability of future generations to meet their own needs

social media

the online interaction that allows people and businesses to communicate and share ideas, personal information, and informations about products or services.

service economy

an economy in which more effort is devoted to the production of services than to the production of goods

e-business

the organized effort of individuals to produce and sell through the internet, for a profit, the products and services that satisfy society's needs

specialization

the separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals

factory system

a system of manufacturing in which all the materials, machinery, and workers require to manufacture a product are assembled in one place

domestic system

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

barter

a system of exchange in which goods or services are traded directly for other goods or services without using money

standard of living

a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services.

natural monopoly

an industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the public interest.

monopoly

a market or industry with only one seller, and there are other barriers oto keep other firms from entering the industry.

oligopoly

a market or industry in which there are few sellers

product differentiation

the process of developing and promoting differences between one's products and all competitive products.

market price

the price at which the quantity demanded is exactly equal to the quantity supplied. (refer to figure 1.7)

demand

the quantity of a product that buyers are willing to purchase at each of various prices

supply

the quantity of a product that producers are willing to sell at each of various prices

perfect (pure) compeition

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

competition

rivalry among businesses for sales to potential customers

National debt

the total of all federal deficits

Fiscal policy

government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending

monetary policies

Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates

depression

a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession

recession

two or more consecutive three-month periods of decline in a country's GDP

business cycle

the recurrence of periods of growth and recession in a nation's economic activity

producer price index (PPI)

an index that measures prices that producers receive for their finished goods

consumer price index (CPI)

a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area

unemployment rate

the percentage of a nation's labor force unemployed at any time

deflation

a general decrease in the level of prices

inflation

a general rise in the level of prices

Gross Domestic Product

the total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period.

productivity

the average level of output per worker per hour

command economy

an economic system in which the government decides what goods and services will be produced, how they will be, for whom will they, and who owns and controls the major factors of production

consumer products

goods and services purchased by individuals for personal consumption

mixed economy

an economy that exhibits elements of both capitalism and socialism

Market economy

an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices

Invisible hand

a term created by Adam Smith to describe how an individual's personal gain benefits others and a nation's economy

Capitalism

derived from Adam Smith, an economic system in which individuals own and operate the majority of businesses that provide goods and services

Entrepreneur

a person who risks time, effort, and money to start and operate a business

What are the four factors of production?

CELL! Capital, Entrepreneurship, Land, Labor

factors of production

resources used to produce goods and services

economy

the way in which people deal with the creation and distribution of wealth

macroeconomics

the study of the national economy and the global economy

microeconomics

the study of the decisions made by individuals and businesses

Economics

the study of how wealth is created and distributed

Stakeholders

all the different people or groups of people who are affected by the policies and decisions made by an organization

Profit

what remains after all business expenses have been deducted from sales revenue

Business

the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs

Managers must be able to perform five basic management functions?

planning, organizing, leading, motivating, and controlling

Cultural Diversity (workplace)

differences among people in a workforce owing to race, ethnicity, and gender

Free Enterprise

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