Chapter 1 Exploring the World of Business & Economics Flashcards
Two or more consecutive three- month periods of decline in a country’s GDP.
Recession.
A person who risks time effort and money to start and operate a business.
Entrepreneur.
A severe recession that lasts longer than a recession.
Depression.
A general rise in the level of prices.
Inflation.
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.
Free Enterprise.
The quantity of a product that producers are willing to sell at each of various prices.
Supply.
Rivalry among businesses for sales to potential customers.
Competition.
Differences among people in a workforce owing to race, ethnicity and gender.
Cultural diversity.
An economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices.
Market Economy.
A general decrease in the level of prices.
Deflation.
What remains after all business expenses have been deducted from sales revenue.
Profit.
An economy that exhibits elements of both capitalism and socilism.
Mixed Economy.
All the different people or groups of people who are affected by the decisions made by an organization.
Stake Holder.
The way in which people deal with the creation and distribution of wealth.
Economy.
The organized effort of individuals to produce and sell, for profit, the goods and services that satisfy society’s needs.
Business.
