Chapter 3 Economic Challenges Facing Contemporary Business Flashcards
What is MICROECONOMICS?
study of small economic units, such as individual consumers, families, and businesses.
What is DEMAND?
willingness and ability of buyers to purchase goods and services.
What is SUPPLY?
willingness and ability of sellers to provide goods and services.
What is DEMAND CURVE?
graph of the amount of a product that buyers will purchase at different prices.
What is SUPPLY CURVE?
shows the relationship between diff. prices and quantities that sellers will offer for sale, regardless of demand.
What is EQUILIBRIUM PRICE?
The point where the demand curve and the supply curve meet.
What is MACROECONOMICS?
study of a nation’s overall economic issues.
What is PURE COMPETITION?
where buyers and sellers have no significant influence on price.
What is MONOPOLISTIC COMPETITION?
market structure where large numbers of buyers and sellers exchange differentiated products. For example a clothing company or pet food.
What is OLIGOPOLY COMPETITION?
market sutuation in which relatively few sellers compete and high star-up costs form barriers to keep out new competitors.
What is MONOPOLY?
market situation in which a single seller dominates trade in a good or service. Example, MICROSOFT.
What is REGULATED MONOPOLIES?
market situation in which a local, state or federal gov. grants exclusive rights in a certain market to a single firm.
What is SOCIALISM?
economic system characterized by government ownership and operation of major industries such as communications
What is COMMUNISM?
system in which all property would be shared equally by the people of a community under the direction of a strong central gov.
What is PRIVATIZATION?
conversion of government-owned and operated companies into privately held businesses.
