Chapter 3&4 Flashcards
Supply
The quantity of a product or service that businesses are willing and able to provide at a particular price.
Demand
The quality of a product or service that consumers are willing and able to buy at a certain price.
Standard of living
The way you live as measured by the kinds and quality of goods and services you can afford. Is decided by your education.
Labor productivity
The quantity of a good that an average worker can produce in an hour.
Public goods
Something needed by a community & provided by the goverment.
What are the three economic rolls?
Consumer, worker, and citizen.
Dollar vote
A dollar vote is when you spend money for a good or service, therefore the company will keep making that good or provide that service.
What happens when supply goes up?
The prices go down.
What happens to prices when supply goes down?
Prices go up.
Gross domestic product(GDP)
The total dollar value for all good and services produced in a country in one year.
Base year
The year chosen to compare and item, such as a price, to any other year.
GDP per capita
Number calculated by dividing the GDP by the population
Business cycle
Movement of the economy from one condition to another and back again.
Prosperity
A phase in the business cycle when most of the people who want to work are working and businesses produce goods and services in record number.
Recession
A phase where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year.
