| Term | Definition |
|---|
| economics | The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals. |
| macroeconomics | The part of economics that looks at the operation of a nation's economy as a whole. |
| microeconomics | The part of economics at the behavior of people and organizations in particular markets. |
| resource development | The study of how to increase resources and to create the conditions that will make better use of those resources. |
| invisible hand | A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all. |
| capitalism | An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. |
| supply | The quantity of products that manufacturers or owners sell at different prices at a specific time. |
| demand | The quantity of products that people are willing to buy at different prices at a specific time. |
| market price | The price determined by supply and demand. |
| perfect competition | Market situation in which there are many sellers in a market and no seller is large enough to dictate the price. |
| monopolistic competition | The market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different. |
| oligopoly | A form of competition in which just a few sellers dominate the market. |
| monoply | A market in which there is only one seller for a product or service. |
| socialism | An economic system based on the premise that some, if not most buisnesses shoulde be owned by the government so that profits can be evenly distributed among the people |
| brain drain | The loss of the best and brightest people to other countries. |
| communism | An economic and political system in which the state (the governement) makes slmost all economic decisions ans owns almost all the major factors of production. |
| free-market economies | Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows. |
| command economies | Economic systems in which the governement largely decides what goods and services will be produced,whi will get them, and how the economy will grow. |
| mixed economies | Economic systems in which some allocation of resources is made by th market ans some by the government. |
| gross domestic product (GRD) | The total value of final goods and services produced in a country in a given year. |
| unemployment rate | The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks. |
| inflation | A general rise in the prices of goods and services over time. |
| disinflation | A situation in which price increases are slowing (the inflation rate is declining). |
| deflation | A situation in which prices are declining. |
| consumer price index (CPI) | Monthly statisitcs that measure the pace of inflation or deflation. |
| producer price index (PPI) | An index that measures prices at the wholesale level. |
| business cycles | The periodic rises and falls that occur in all economies over time. |
| recession | Two or more consecutive quarters of decline in the GDP. |
| depression | A severe recession. |
| fiscal policy | The federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending. |
| national debt | The sum of government deficits over time. |
| monetary policy | The management of the money supply and interest rates. |
Combine with other sets
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