 | Term | Definition |
| |
Brain Drain |
The loss of the best and brightest people to other countries. |
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Business Cycle |
The periodic rises and falls that occur in all economics over time. |
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Capitalism |
An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit. |
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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. |
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Communism |
An ecnomic and political system in which the state makes almost all economic decisions and owns almost all the major factors of production. |
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Consumer Price Index (CPI) |
Monthly statistics that measure the pace of inflation or deflation. |
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Deflation |
A situation in which prices are declining. |
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Demand |
The quantity of products that people are willing to buy at different prices at a specific time. |
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Depression |
A severe recession. |
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Disinflation |
A situation in which price increases are slowing. |
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Economics |
The study of how society chooses to produce goodsand services and distribute them for consumption among various competing groups and individuals. |
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Fiscal Policy |
The federal governments efforts to to keep the economy stable by increasing or decreasing taxes or government spending. |
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Free-Market Economies |
Economic system in which the market largely determines what goods and services get produced, who gets them, and how the economy grows. |
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Gross Domestic Product (GDP) |
The total value of final goods and services produced on a country in a given year. |
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Inflation |
A general rise in the prices of goods and services over time. |
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Invisible hand |
A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all |
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Macroeconomics |
The part of economics study that looks at the operation of a nation's economy as a whole. |
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Market Price |
The price determined by supply and demand. |
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Microeconomics |
The part of economics that looks at the behavior of people and organizations in perticular markets. |
| |
Mixed economies |
Economic systems in which sime allocations of resources is made by the market and some by the government. |
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