Chapter 1 (B) Flashcards
A brain drain is the _____ of the ______ and _______people.
loss; best; brightest
Communism is an ________ and _______ system in which government makes all _________ decisions and owns almost all major factors of production.
economic; political; economic; production
Capitalism is an economy where ______ or _____ factors of _______ are owned by _______.
All; most; production; individuals.
The invisible hand describes a process that turns self-directed _______ into economic ________ for all when a person ________.
gains; benefits; prospers
Under _____ _______ capitalism, people have four basic rights: The right to own ________, the right to own ___ ________ and keeps that business’s profits, the right to ________ of competition and the right to freedom of ______.
free-market; property; a business; freedom; choice
Socialism is an economic system based on the premise that some, if not most, basic business should be ____ by the government so that ____ can be more evenly ______ among the people.
owned; profits; distributed
A business is any ______ that seeks to provide _____ and _______ to others while operating at a _____.
activity; goods; services; profit
Services are ______ products such as education, healthcare, _______, _______, and travel and tourism.
intangible; insurance; recreation
Revenue is the total amount of ________ a business takes in during a given period by _______ goods and services
money; selling
Profit is the amount of money a ________ earns above and beyond what it ________ for salaries and other expenses needed to run the _______.
business; spends; operation
A ______ occurs when a business’s ______ are more than its revenues
loss; expenses
An __________ is a person who risks time and ______ to start and ______ a business
Entrepreneur; money; manage
______ is the chance an entrepreneur takes of losing ________ and money on a business that may not prove to be __________.
Risk; time; profitable
Standard of living refers to the amount of _____ and _______ people can ______ with the money they have
goods; services; buy
________ are all the people who stand to gain or lose by the ________ and _________ of a business and whose _________ the business needs to address.
Stakeholders; policies; activities; concerns
A _______ organization is an organization whose goals do not include making a personal ________ for its owners or organizers
non-profit; profit
The business environment consists of surrounding _______ that either _____ or ______ the development of a business.
factors; help; hinder
The _____ elements of the business environment are: 1. _________ 2. technological 3. competitive 4. social 5. ________
five; economic and legal; global
effectiveness is ______ the desired _______
producing; result
efficiency is ______ goods and services using the _____ amount of _______.
producing; least
________ is the amount of output you generate given the amount of input
productivity
_________ is the statistical study of the human _______ with regard to its size, ________, and other characteristics such as age, race, _______ and income.
Demography; population; density; gender
Economics is the study of how ________ chooses to employ resources to produce _____ and _____ and _________ them for consumption among various competing groups and individuals.
society; goods; services; distribute
Macroeconomics looks at the ______ of a nation’s economy as a ________
operation; whole
Microeconomics looks at the _______ of people and organizations in markets for ________ products and services.
Behavior; particular
________ development is the study of how to increase resources
Resource
Factors of _______ are the resources used to create _____: land, ______, capital, _______ and knowledge
production; wealth; labor; entrepreneurship
In ________ economies, the government largely decides what goods and services will be produced, who gets them, and how the economy will _____.
Command; grow
In _____-_____ economies, the market largely determines what goods and services get produced, who gets them, and how the economy grows.
free-market
Supply refers to the _______ of products manufacturers or owners are willing to sell at _______ prices at a specific time.
quantity; different
Demand refers to the ______of products that people are willing to ______ at different prices at a specific time
quantity; buy
A market price is determined by ______ and _______. It is the price toward which the market will _______.
supply; demand; trend
Perfect competition exists when there are many ______in a market and none is ______enough to dictate the price of a product
sellers; large
Monopolisitic competition occurs when a large number of sellers produce very ______ products that buyers nevertheless perceive as _______
similar; different
Oligopoly is a degree of _______ in which just a few sellers _______ the market
competition; dominate
A business is considered a monopoly when it _____ the total ______ of a produce or service.
controls; supply
GDP is the total _______ of goods and services produced in a ______ in a given year.
value; country
The unemployment rate describes the percentage of civilians ____ years old who are unemployed and tried to find a job within the prior _____ weeks.
16; four
When inflation occurs, there is a general _____ in the prices of goods and services over _____.
rise; time
When disinflation occurs, the _____ increases start _____
price; slowing
Deflation simply means that _____ are _______
prices; declining
Stagflation means the economy is ______ but prices are going up somehow
slowing
Consumer price index (CPI) are monthly ______ that measure the pace of ______ and deflation
statistics; inflation
_____ inflation is CPI minus ____ and _____ costs.
Core; food; energy
Producer price index (PPI) measures the ____ in prices at the wholesale level
change
A ______ occurs when two or more consecutive quarters of decline in _____.
recession; GDP
A _____ policy refers to federal governments efforts to keep the economy ______ by increasing or decreasing taxes or government spending
fiscal; stable
_________ economic theory states that a government ______ of increasing spending and cutting taxes _____ the economy in recession
Keynesians; policy; stimulates
_______ debt is the sum of governments deficits over time
National
_________ policy is the _______ of the money supply and interest rates by the FRB
monetary; management
