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Business 101 > Chapter 2 > Flashcards

Chapter 2 Flashcards

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1
Q

Economics

A

The Study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

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2
Q

Macroeconomics

A

The study of the operations of a nation’s economy as a whole

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3
Q

Microeconomics

A

The Study of the behaviors of people and organizations in markets for particular products or services

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4
Q

Invisible Hand

A

Used to describe the process that turns self-directed gain into social and economic benefits for all.

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5
Q

State Capitalism

A

A combination of freer markets and some government control

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6
Q

Free Market

A

One in which the decisions about what and how much to produce are made by the market

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7
Q

Supply

A

The quantities of products manufacturers or owners are willing to sell at defferent prices at a specific time

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8
Q

Demand

A

The quantity of products that people are willing to buy at different prices at a specific time.

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9
Q

Perfect Competition

A

The degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product

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10
Q

Monopolistic Competition

A

The degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different.

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11
Q

Oligopoly

A

Degree of competition in which just a few sellers dominate a market

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12
Q

Monopoly

A

When one seller controls the total supply of a product or service and sets the price

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13
Q

Socialism

A

An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people.

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14
Q

Brain Drain

A

The loss of the best and brightest people to other countries

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15
Q

Communism

A

An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production.

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16
Q

Free-market Economies

A

Exist when the market largely determines what goods and services get produced,who gets them, and how the economy grows. Capitalism is the popular term for this economic system

17
Q

Command Economies

A

Exist when the government largely decides what goods and services will be produced, who gets them, and how the economy will grow. Socialism and Communism are variations of this economic system

18
Q

Gross Domestic Product

A

The total value of final goods and services produced in a county in a given year

19
Q

Unemployment Rate

A

Refers to the percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.

20
Q

Inflation

A

A general rise in the prices of goods and services over time.

21
Q

Disinflation

A

When Price increases are slowing

22
Q

Deflation

A

When Prices are declining

23
Q

Stagflation

A

Occurs when the economy is slowing but prices are going up anyhow.

24
Q

Consumer Price Index

A

Monthly statistics that measure the pace of inflation or deflation

25
Q

Core Inflation

A

CPI (Consumer Price Index) minus food and energy costs

26
Q

Producer Price Index

A

The changes in price at the wholesale level

27
Q

Business Cycles

A

The Periodic Rises and Falls that occur in economies over time

28
Q

Fiscal Policy

A

Refers to the Federal Government’s efforts to keep the economy stable by increasing or decreasing taxes or government spending

29
Q

Keynesian Economic Theory

A

The Theory that a government policy of increasing spending and cutting taces could stimulate the economy in a recession.

30
Q

National debt

A

The sum of government deficits over time

31
Q

Monetary policy

A

The management of the money supply and interest rates by the federal reserve bank

32
Q

Recession

A

Two or more consecutive quarters of decline in the GDP

33
Q

Depression

A

A severe recession accompanied by deflation

34
Q

Free Market Capitalism Gives four basic rights:

A
  1. The Right to own private property
    1. The right to own a business and keep all that business’s profits
    2. The right to freedom of competition
      1. The right to freedom of choice
35
Q

What are the four degrees of competition?

A
  • Perfect Competition (agriculture)
  • Monopolistic Competition (hot dogs, laptops),
  • Oligopoly (tobacco, gasoline, automobiles) ,
  • monopoly (public utilities)
36
Q

What are the four phases of the business cycle?

A

Economic Boom
Recession
Depression
Recovery

37
Q

What are three economic indicators?

A

Gross Domestic Product
The Unemployment Rate
Price Indexes

38
Q
A

Business 101 (8 decks)

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