 | Term | Definition |
| |
brian drain |
the loss of the best and brightest people to other countries |
| |
business cycles |
the periodic rises and falls that occur in all 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 government largely decides what goods and services will be produced, who will get them, and how the economy will grow |
| |
communism |
an economic and political system in which the state [the government] makes almost all economic decisions and owns almost all the major factors of production |
| |
consumer price index [CPI] |
monthly statistics that measure the pace of inflation or deflation |
| |
deflation |
a situation in which prices are declining |
| |
depression |
a severe recession |
| |
disinflation |
a situation in which price increases are slowing [the inflation rate is declining] |
| |
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 indivduals |
| |
fiscal policy |
the federal governments efforts to keep the economy stable by increasing or decreasing taxes or government spending |
| |
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 |
| |
gross domestic product [GDP] |
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 |
a phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all |
| |
macroeconomics |
the part of economics that looks at the operation of a nation's economy as a whole |
| |
market price |
the price determined by supply and demand |
| |
microeconomics |
the part of economics that looks at the behavior of people and organizations in particular markets |
| |
mixed economies |
economic systems in which some allocation of resources is made by the market and some by the government |
| |
monetary policy |
management of the money supply and interest rates; controlled by the Federal Reserve System |
| |
monopolistic competition |
the market situation in which large number of sellers produce products that are very similar but that are perceived by buyers as different |
| |
monopoly |
a market in which there is only one seller for a product or service |
| |
national debt |
the sum of government deficits over time |
| |
oligopoly |
a form of competition in which just a few sellers dominate the market |
| |
perfect competition |
the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product |
| |
producer price index [PPI] |
an index that measures prices at the wholesale level |
| |
recession |
2 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 evenly distributed among the people |
| |
dismal science |
is a derogatory alternative name for economics; predicted that starvation would result as projected population growth exceeded the rate of increase in the food supply. |
| |
supply |
the quantity of products that manufactors or owners are willing to 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 |
| |
equilibrium point |
place where quantity demanded and supplied meet |
| |
what are the 4 basic rights under free-market capitalism |
1. right to private property 2. right to own a business and to keep all profits 3. the right to freedom of competition 4. right to freedom of choice |
| |
unemployment rate |
the number of civilians at least 16 yrs who are unemployed and tried to find a job within the prior 4 weeks |
| |
what are the four phases of long-term business cycles |
1. economic boom 2. recession 3. depression 4. recovery |
| |
what are the three indicators of economic conditions |
1. gross domestic product [GDP] 2. unemployment rate 3. the price indexes |
Share on Facebook
Share on MySpace