Intro to Business Ch 2

brain drain

the loss of the best and brightest people to other countries

business cycles

the periodic rises and falls that occur in economies over time

capitalism

an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit

command economies

Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows

communism

an economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production

consumer price index

monthly statistics that measure the pace of inflation or deflation

deflation

a situation in which prices are declining

demand

the quantity of products that people are willing to buy at different prices at a specific time

depression

a severe recession, usually accompanied by deflation

disinflation

a situation in which prices are declining

economics

the study of how society chooses to employ resources to provide goods and services and distrubute among various competing groups and individuals

fiscal policy

the federal governments efforts to keep the economy stable by increasing or decreasing taxes or gov. spending

free-market economies

economic systems in which the market largely determines what goods and services are produced, who gets them, and how the economy grows

gross domestic products

the total value of final goods and services produced in a country in a given year

inflation

a general rise in the prices of goods and services over time

invisible hand

the process that turns self directed gain into social and economic benfit for all

keynesian economic theory

the theory that a government policy of increased spending and cutting taxes could stimulate the economy in a recession

macroeconomics

the part of economics study that looks at the operation of a nations' economy as a whole

market price

the price determined by supply and demand

microeconomics

the part of economics study that looks at the behavior of people and organizations in particular markets

mixed economies

economic systems in which some allocation of resources are made by the market and some by the government

monetary policies

the management of the money supply and interest rates by the Federal Reserve Bank

monopolistic competitions

the degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different

monopoly

a degree of competition in which only one seller controls the total supply of a product or service, and sets the price

national debt

the sum of government deficits over time

oligopoly

a degree of competition in which just a few sellers dominate the market

perfect competition

the degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product

producer price index

an index that measures prices at the wholesale level

recession

two or more consecutive quarters of decline in the GDP

resource development

the study of how to increase resources and to create the conditions that will make better use of those resources

socialism

an economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people

stagflation

a situation when the economy is slowing but prices are going up anyhow

supply

the quanity of products that manufactures or owners are willing to sell at different prices at a specific time

unemployment rate

the number of civilians at least 16 who are umemplyed and currently looking for a job