Chapter 2 Flashcards
Resource development
Study of how to increase resources and create conditions that will make better use of them.
Economics
is the study of how society chooses to employ resources to produce goods and services
Macroeconomics
Looks at the operation of a nations’s economy as a whole
microeconomics
looks at the behavior of people and organizations in markets for a particular particular products or services
How do Free Markets Work?
Decisions about what and how much to produce are made by the buyers and sellers negotiating
Equilibrium Point
Place at which the supply curve and the demand curve cross or intersect
Perfect competition
Exists when there are many sellers in a market and noon is large enough to dictate the price of a product.
Monopolistic competition
Large number of sellers produce very similar products that buyers nevertheless perceive as different
oligopoly
Degree of competition in which just a few sellers dominate a market
Monopoly
One seller controls the total supply of a product or service, and sets the price
Socialism
economic system based on the premise that basic business should be owned by the government so that profits can be more evenly distributed among the people
Fiscal policy
keeps the economy stable by increasing or decreasing taxes and government spending.
brain drain
Loss of the best and brightest people to other countries
Key Economic Indicators
- Gross domestic product (GDP)
- unemployment rate
- Price indexes
Gross domestic product (GDP)
Total value of final goods and services produced in a country given year.
