3rd Six Weeks Flashcards
An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal or real terms, the latter of which is adjusted for inflation.
Economic Growth
A quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Often expressed as a percentage, it indicates a decrease in the purchasing power of a nation’s currency.
Inflation
The share of the labor force that is jobless, expressed as a percentage.
Unemployment Rate
This measure records nation’s transactions with the rest of the world – specifically its net trade in goods and services, its net earnings on cross-border investments, and its net transfer payments – over a defined period of time, such as a year or a quarter.
Current account
This means that the general price level in an economy does not change much over time. In other words, prices neither go up or down; there is no significant degree of inflation or deflation.
Price Stability
Voluntary private household consumption, or the exchange of money for goods and services in an economy.
Consumer Spending
The total value of all goods and services produced.
Gross Domestic Product
An economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.
Capitalism
The monetary reward business owners receive in return for taking the risk involved in starting a business.
Profit Motive
The split between the capitalist class, which own the business, and the working class.
Two-Class System
The rivalry between companies selling similar products and services.
Competition
Where marketers develop different price strategies to beat the competition.
Price Competition
Where marketers try to promote the product by exhibiting its distinguishing features.
Non-Price Competition
A financial institution that accepts deposits and provides security and convenience to their customers.
Commercial Banks
A financial intermediary that performs a variety of services for businesses and some governments.
Investment Banks
A company that exists to pool risk by collecting premiums from a large group of people who want to protect themselves and/or their loved ones against a particular loss, such as a fire, car accident, illness, lawsuit, disability or death.
Insurance Companies
An intermediary between buyers and sellers to facilitate securities transactions.
Brokerages
A corporation or a trust through which individuals invest in diversified, professionally managed portfolios of securities by pooling their funds with those of other investors.
Investment Companies
A legally binding contract documenting the terms of a loan agreement, outlining all of the terms associated with the loan.
Credit Agreement
Business risks such as fires and other unforeseen events that can force vulnerable businesses to relocate or close.
Business Interruption
Risk of damage to or the destruction of property, caused either by a person who is not its owner or by natural phenomena.
Business Risk: Property Loss
Risk of having to provide medical treatment costs and lost productivity, inflating business insurance premiums.
Business Risk: Injury
Companies being at risk of lawsuits for accidental injury, libel or slander and other unanticipated results of day-to-day business.
Business Risk: Liability
A business being instantly crippled by a loss of data or data theft.
Business Risk: Security Breach
