Chapter 1 - Business Flashcards
Productivity
Output per worker per hour
Definition of Business
The organized effort of individuals to produce and sell, for a profit, goods and services that satisfies society’s needs
Gross domestic product (GDP)
Total dollar value of all goods and services produced within a country during one year
Unemployment rate
How many people are not working (don’t include people who don’t want to work)
Inflation
A general rise in prices
Standard of living
A measure of how well off an individual or society is based on satisfaction of goods and services
Economic indicators
Peak/prosperity, recession, trough (depression) and recovery
Four common types of competition
Perfect competition, monopolistic competition, oligopoly and monopoly
Current trends in business today
Globalization, technology, service oriented business, sustainability, and participated management style.
Economics
The study of how wealth is created and distributed
Macroeconomics
Study of wealth on a nationwide or global scale
Microeconomics
study of wealth on a individual or smaller scale
Entrepreneurship
Someone was willing to risk time, effort and money to create a business
Consumer price index (CPI)
How much will a fix basket of goods bought by a consumer close
Sustainability
Meeting the needs of the present without compromising the needs of the future
