Chapter 1 Vocabulary Flashcards

1
Q

Activity that provides goods or services to consumers for the purpose of making a profit.

A

Profit-making Business

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2
Q

Difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.

A

Profit

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3
Q

Organizations established to provide social or educational services.

A

Not-for-profit Organizations (Nonprofit)

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4
Q

A business that, beyond the profit motive, has a social mission built into its business model.

A

For-profit Social Enterprise

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5
Q

Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.

A

Management

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6
Q

Person who designs and oversees the process that converts resources into goods or services.

A

Operations Manager

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7
Q

The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

A

Marketing

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8
Q

Financial advisor responsible for measuring, summarizing, and communicating financial and managerial information.

A

Accountant

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9
Q

Activities involved in planning for, obtaining, and managing a company’s funds.

A

Finance

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10
Q

Resources consisting of land, labor, capital (money, buildings, and equipment), and entrepreneurial skills combined to produce goods and services.

A

Factors of Production

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11
Q

Means by which a society makes decisions about allocating resources to produce and distribute products.

A

Economic System

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12
Q

Economic system featuring the highest level of government control over allocation and distribution.

A

Communism

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13
Q

Economic system falling between communism and capitalism in terms of government control over allocation and distribution.

A

Socialism

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14
Q

Economic system in which most businesses are owned and operated by individuals.

A

Free Market System

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15
Q

Economic system featuring the lowest level of government control over allocation and distribution.

A

Capitalism

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16
Q

Economic system that relies on both markets and government to allocate resources.

A

Mixed Market Economy

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17
Q

Process of converting government-owned businesses to private ownership.

A

Privatization

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18
Q

The study of the production, distribution, and consumption of goods and services.

A

Economics

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19
Q

Market in which many consumers buy standardized products from numerous small businesses.

A

Perfect Competition

20
Q

Quantity of a product that buyers are willing to purchase at various prices.

A

Demand

21
Q

Graph showing the quantity of a product that will be bought at certain prices.

A

Demand Curve

22
Q

Quantity of a product that sellers are willing to sell at various prices.

A

Supply

23
Q

Graph showing the quantity of a product that will be offered for sale at certain prices.

A

Supply Curve

24
Q

Price at which buyers are willing to buy exactly the amount that sellers are willing to sell.

A

Equilibrium Price

25
Q

Market in which many sellers supply differentiated products.

A

Monopolistic Competition

26
Q

Market in which a few sellers supply a large portion of all the products sold in the marketplace.

A

Oligopoly

27
Q

Market in which there is only one seller supplying products at regulated prices.

A

Monopoly

28
Q

Monopoly in which, because of the industry’s importance to society, one seller is permitted to supply products without competition.

A

Natural Monopoly

29
Q

Monopoly in which one seller supplies a product or technology to which it holds a patent.

A

Legal Monopoly

30
Q

Measure of the market value of all goods and services produced by a nation’s economy in a given year.

A

Gross Domestic Product (GDP)

31
Q

Pattern of expansion and contraction in an economy.

A

Business Cycle

32
Q

Economic slowdown measured by a decline in gross domestic productivity.

A

Recession

33
Q

Severe, long-lasting recession.

A

Depression

34
Q

Condition under which about 95 percent of those who want to work are employed.

A

Full Employment

35
Q

Percentage of the total labor force that’s currently unemployed and actively seeking work.

A

Unemployment Rate

36
Q

Conditions under which the prices for products remain fairly constant.

A

Price Stability

37
Q

Rise in the overall price level.

A

Inflation

38
Q

Decrease in overall price level.

A

Deflation

39
Q

Index that measures inflation by measuring the prices of goods purchased by a typical consumer.

A

Consumer Price Index (CPI)

40
Q

Statistic that provides information about trends in the economy.

A

Economic Indicator

41
Q

Statistical data that measures economic trends after the overall economy has changed.

A

Lagging Economic Indicator

42
Q

Statistical data that predict the status of the economy three to twelve months in the future.

A

Leading Economic Indicator

43
Q

Measure of optimism that consumers express about the economy as they go about their everyday lives.

A

Consumer Confidence Index

44
Q

Efforts exerted by the Federal Reserve System (“the Fed”) to regulate the nation’s money supply.

A

Monetary Policy

45
Q

Governmental use of taxation and spending to influence economic conditions.

A

Fiscal Policy

46
Q

Total amount of money owed by the federal government.

A

National Debt