Intro To Business: Chapter 1 Flashcards
What is Fiscal Policy?
Government spending and taxation. Designed to control inflation, reduce unemployment, and encourage economic growth.
What is Monetary Policy?
Addresses interest rates and the supply of money
What is the difference between Macroeconomics and Microeconomics?
Macroeconomics: Decisions of the government (addresses the nations larger economic issues)
Microeconomics: The study of decisions and choices of people
Does a DEMAND graph slope down or up? ( / or \ )
Down ( \ )
What is supply?
A sellers willingness to sell something
What is demand?
A buyers desire or ability to buy something
Does a SUPPLY graph slope down or up? ( / or \ )
Up ( / )
Does a SUPPLY graph slope down or up? ( / or \ )
Up ( / )
What is the point where the supply and demand graphs meet called?
Equilibrium point
What is privatization?
When a company goes from being run by the government, to being privately owned by an individual or group.
What is prosperity?
When consumer confidence is high and people are not worried about keeping jobs.
What is the difference between a recession and depression?
A recession is an economic contraction for at least 6 months. A depression is a more severe version of a recession.
What is pure competition?
When many producers are making generally the same product, and it is easy to enter the industry. The price of items is determined by supply and demand. (Ex. Wheat farmers)
What is monopolistic competition?
Many sellers offer slightly different products, but serve the same purpose. Sellers have little control over price. Slightly harder to enter than Pure Competition.
What is an oligopoly?
When there are only a few sellers in the industry, and is hard to enter. The sellers have some control over the price. (Ex. Banks, Airlines)
