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Business 101 > Economic Systems and Business > Flashcards

Economic Systems and Business Flashcards

1
Q

Barriers to Entry

A

Factors, such as technological or legal conditions, that prevent new firms from competing
equally with an existing firm

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2
Q

Business

A

An organization that strives for profit by providing goods and services desired by its customers

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3
Q

Business Cycles

A

Upward and downward changes in the level of economic activity

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4
Q

Capital

A

Inputs, such as tools, machinery, equipment, and buildings, used to produce goods and services and get them to the customer

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5
Q

Capitalism

A

An economic system based on competition in the marketplace and private ownership of the factors of production (resources); also known as the private enterprise system

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6
Q

Circular Flow

A

Movement of inputs and outputs among households, businesses, and governments; a way of showing how the sectors of the economy interact

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7
Q

Communism

A

An economic system characterized by government ownership of virtually all resources, government control of all markets, and economic decision-making by central government planning

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8
Q

Consumer Price Index (CPI)

A

An index of prices of a “market basket” of goods and services purchased by typical urban consumers

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9
Q

Contractionary Policy

A

The use of monetary policy by the Fed to tighten the money supply by selling government securities or raising interest rates

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10
Q

Cost-Push Inflation

A

Inflation that occurs when increases in production costs push up the prices of final goods and services

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11
Q

Costs

A

Expenses incurred from creating and selling goods and services

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12
Q

Crowding Out

A

The situation that occurs when government spending replaces spending by the private sector

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13
Q

Cyclical Unemployment

A

Unemployment that occurs when a downturn in the business cycle reduces the demand for labor throughout the economy

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14
Q

Demand

A

The quantity of a good or service that people are willing to buy at various prices

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15
Q

Demand Curve

A

A graph showing the quantity of a good or service that people are willing to buy at various prices

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16
Q

Demand-Pull Inflation

A

Inflation that occurs when demand for goods and services is greater than the supply

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17
Q

Demography

A

The study of people’s vital statistics, such as their age, gender, race and ethnicity, and location

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18
Q

Economic Growth

A

An increase in a nation’s output of goods and services

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19
Q

Economic System

A

The combination of policies, laws, and choices made by a nation’s government to establish the systems that determine what goods and services are produced and how they are allocated

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20
Q

Economics

A

The study of how a society uses scarce resources to produce and distribute goods and services

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21
Q

Entrepreneurs

A

People who combine the inputs of natural resources, labor, and capital to produce goods or services with the intention of making a profit or accomplishing a not-for-profit goal

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22
Q

Equilibrium

A

The point at which the quantity demanded equals quantity supplied

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23
Q

Expansionary Policy

A

The use of monetary policy by the Fed to increase, or loosen, the growth of the money supply

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24
Q

Factors of Production

A

The resources used to create goods and services

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25
Federal Budget Deficit
The condition that occurs when the federal government spends more for programs than it collects in taxes
26
Federal Reserve System (the Fed)
The central banking system of the United States
27
Fiscal Policy
The government's use of taxation and spending to affect the economy
28
Frictional Unemployment
Short-term unemployment that is not related to the business cycle
29
Full Employment
The condition when all people who want to work and can work have jobs
30
Goods
Tangible items manufactured by businesses
31
Gross Domestic Product (GDP)
The total market value of all final goods and services produced within a nation's borders each year
32
Inflation
The situation in which the average of all prices of goods and services is rising
33
Knowledge
The combined talents and skills in the workforce
34
Knowledge Workers
Workers who create, distribute, and apply knowledge
35
Macroeconomics
The subarea of economics that focuses on the economy as a whole by looking at aggregate data for large groups of people, companies, or products
36
Market Structure
The number of suppliers in a market
37
Microeconomics
The subarea of economics that focuses on individual parts of the economy, such as households or firms
38
Mixed Economies
Economies that combine several economic systems; for example, an economy where the government owns certain industries but others are owned by the private sector
39
Monetary Policy
A government's programs for controlling the amount of money circulating in the economy and interest rates
40
Monopolistic Competition
A market structure in which many firms offer products that are close substitutes and in which entry is relatively easy
41
National Debt
The accumulated total of all of the federal government's annual budget deficits
42
Not-For-Profit Organizations
An organization that exists to achieve some goal other than the usual business goal of profit
43
Oligopoly
A market structure in which a few firms produce most or all of the output and in which large capital requirements or other factors limit
44
Perfect (Pure) Competition
A market structure in which a large number of small firms sell similar products, buyers and sellers have good information, and businesses can be easily opened and closed
45
Producer Price Index (PPI)
An index of the prices paid by producers and wholesalers for various commodities, such as raw materials, partially finished goods, and finished products
46
Productivity
The amount of goods and services one worker can produce
47
Profit
The money left over after all costs are paid
48
Purchasing Power
The value of what money can buy
49
Pure Monopoly
A market structure in which a single firm accounts for all industry sales of a particular good or service and in which there are barriers to entry
50
Quality of Life
The general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time
51
Recession
A decline in GDP that lasts for at least two consecutive quarters
52
Relationship Management
The practice of building, maintaining, and enhancing interactions with customers and other parties to develop long-term satisfaction through mutually beneficial partnerships
53
Revenue
The money a company receives by providing services or selling goods to customers
54
Risk
The potential to lose time and money or otherwise not be able to accomplish an organization's goal
55
Savings Bonds
Government bonds issued in relatively small denominations
56
Seasonal Unemployment
Unemployment that occurs during specific seasons in certain industries
57
Services
Intangible offerings of businesses that can't be held, touched, or stored
58
Socialism
An economic system in which the basic industries are owned either by the government itself or by the private sector under strong government control
59
Standard of Living
A country's output of goods and services that people can buy with the money they have
60
Strategic Alliance
A cooperative agreement between business firms; sometimes called a strategic partnership
61
Structural Unemployment
Unemployment that is caused by a mismatch between available jobs and the skills of available workers in an industry or region; not related to the business cycle
62
Supply
The quantity of a good or service that businesses will make available at various prices
63
Supply Curve
A graph showing the quantity of a good or service that businesses will make available at various prices
64
Technology
The application of science and engineering skills and knowledge to solve production and organizational problems
65
Unemployment Rate
The percentage of the total labor force that is not working but is actively looking for work

Business 101 (2 decks)

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