Chapter 2 How Economic Issues Affect Business Flashcards
Macroeconomics
The part of the Economic study that looks at the operations of a nations economy as a whole
Microeconomics
Part of the economic study that looks at the behaviour of people and organizations in particular markets
Capitalism
An Economic system in which all or more of the factor of production and distribution are privately owned and operated
Supply
Quantity of products that manufacturers or owners are willing to sell and different prices at a specific time
Demand
Quantity of products that people are will the buy at different prices at specific times
Market price
Price determined by supply and demand
Perfect competition
Market situation when there are many sellers in a market and no seller is large enough to dictate the price of products
Monopolistic competition
Market situation when large number of seller produce products that are similar but perceived by buyers as different
Oligopoly
A form of competition in which just a few sellers dominate the market
Monopoly
A market in which there is one seller for a product or service
Socialism
An Economic system based on the premise that some if not most basic business should be owned by the government so that profits can be distributed among the people
Free market economy
Economy in which the market largely determined what goods and services are produced who gets them and how the economy grows
Command economy
And economy in which the government decides what goods and services are produced, who gets them and how the economy will grow
Mixed economy
Economic system in which some allocation of resources is made by the market and some by the government
Gross domestic product
Total value of goods and services produced in a given year
