Week 2 Ch. 2: Economics, Accounting and Organizations Flashcards

1
Q

Economy

A

the sum total of all the economic activity within a given region

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Economics

A

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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Microeconomics

A

the study of how consumers, businesses, and industries collectively determine the quantity of goods and services demanded and supplied at different prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Macroeconomics

A

the study of “big picture”issues in an economy, including competitive behaviour among firms, the effect of government policies, and overall resource allocation issues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Factors of Production

A

• Natural resources
• Human resources
• Capital
• Entrepreneurship
• Knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Natural resources

A

land, forests, minerals, water, and other tangible assets usable in their natural state

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Human resources

A

all the people who work in an organization or on its behalf

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Capital

A

the funds that finance the operations of a business as well as the physical, human-made elements used to produce goods and services

ex. factories and computers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Entrepreneurship

A

the combination of innovation, initiative, and willingness to take the risks required to create and operate new businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Knowledge

A

expertise gained through experience or association

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Scarcity

A

a condition of any productive resource that has finite supply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Opportunity cost

A

the value of the most appealing alternative not chosen

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Economic indicators

A

• statistics that measure the performance of the economy
• leading and lagging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Key Economic Indicators

A

• Housing starts
• Durable-goods orders
• Price indexes
• Unemployment rate
• Gross domestic product (GDP)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Planned system

A

economic system in which the government controls most of the factors of production and regulates their allocation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Free-market system

A

an economic system in which decisions about what to produce and in what quantities are decided by the market’s buyers and sellers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Capitalism

A

economic system based on economic freedom and competition

17
Q

Capitalism

A

economic system based on economic freedom and competition

18
Q

Nationalization

A

a government’s takeover of selected companies or industries

19
Q

Privatization

A

turning over services once performed by the government and allowing private businesses to perform them instead

20
Q

Regulation

A

relying more on laws and policies than on market forces to govern economic activity

21
Q

Deregulation

A

removing regulations to allow the market to prevent excesses and correct itself over time

22
Q

Monetary policy

A

government policy and actions taken by the Federal Reserve Board to regulate the nation’s money supply

23
Q

Fiscal policy

A

strategy for the use of government revenue collection and spending to influence the business cycle

24
Demand
buyers’ willingness and ability to purchase products at various price points
25
Supply
a specific quantity of a product that the seller is able and willing to provide at various prices
26
Demand curve
a graph of the quantities of a product that buyers will purchase at various prices
27
Supply curve
a graph of the quantities of a product that sellers will offer for sale, regardless of demand, at various prices
28
Equilibrium price
• the point at which quantity supplied equals quantity demanded • bc the supply and demand curves are dynamic, so is the equilibrium point • as variables affecting supply and demand change, so will the equilibrium price
29
Competition
rivalry among businesses for the same customers
30
Pure competition
a situation in which so many buyers and sellers exist that no single buyer or seller can individually influence market prices
31
What Businesses are Affect by
• Inflation • Unemployment rate
32
Inflation
an economic condition in which prices rise steadily throughout the economy
33
Unemployment rate
the portion of the labor force (everyone over 16 who has or is looking for a job) currently without a job
34
Money
• anything generally accepted as a means of paying for goods and services • serves as a medium of exchange, a unit of accounting, a store of value, and a standard of deferred value
35
Canada
the overnight rate is the interest rate at which major financial institutions borrow and lend one-day (or "overnight") funds among themselves
36
Discount rate
the interest rate that member banks pay when they borrow funds from the Central bank
37
Prime rate
the interest rate a bank charges its best loan customers
38
Investment banks
firms that offer a variety of services related to initial public stock offerings, mergers and acquisitions, and other investment matters
39
Commercial banks
financial institutions that accept deposits, offer various types of checking and savings accounts, and provide loans