Unit 2 Test Marketing Flashcards
The total value of all final goods and services produced in a country during one year
Gross domestic product (GDP)
Output per person, a way to measure economic growth
GDP per capita
The portion of people in the labor force who are not working
Unemployment rate
The production output in relation to a unit of input
Productivity
salaries and wages as well as investment income and government payments to individuals
Personal income
The sales of durable and non durable goods bought by customers
Retail sales
The movement of the economy from one condition to another and back again
Business cycle
A period in which people who want to work are working, business produce goods and services in record numbers, wages are good, and the rate of GDP growth increase
Prosperity
A period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year
Recession
A phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures
Depression
The phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again
Recovery
An increase in the general level of prices
Inflation
A number that compares prices on one year with prices in some earlier base year
Price index
A decrease in the general level of prices
Deflation
Involve spending by businesses for items such as land, buildings, equipment, and new products
Capital projects
