Chapter 6: Economic Activity
Terms in this set (32)
Economic pattern of alternating periods of prosperity and decline.
When two or more businesses work together to remove their competition, set prices, and control distribution.
Consumer Price Index (CPI)
A measure of the average change paid for by consumers for typical consumer goods and services over time.
General decline in prices throughout an economy
A period of low economic contraction that is severe and lasts a long time.
A period of economic growth and a rise in GDP.
Something that is not directly connected to an economic activity, but that affects people.
Federal Reserve System
The central bank of the United States created by congress in 1913.
Government policy that attempts to manage the economy by controlling taxing and spending.
Gross Domestic Product (GDP)
The market value of all final goods and services produced in a country during a period of time.
General rise in prices throughout the economy.
Calculate as the rate of change in prices over a period of time, usually monthly or yearly, and expressed as a percent.
In finance, amount a borrower pays to a lender for a loan.
Represents the cost of a loan and is expressed as a percent of the amount borrowed
All the people in a nation who are capable of working and want work.
How a market is organized based on the number of businesses competing for sales in an industry.
Policy that regulates the supply of money and interest rates by a central bank in an economy.
The total amount of money in circulation or in existence in a country.
A large number of small businesses selling similar, but not the same, products at different prices. it is also known as imperfect competition.
Market structure with one business that had a complete control of a markets entire supply of a product.
When strategies other than price are used to attract consumers.
Market structure with a small number of businesses selling the same or similar products.
The highest point in the business cycle and marks the end of expansion.
Characterized by a large number of businesses selling the same product at the same prices
When a lower price is the main reason for customers to buy from one business over another.
Occurs when two or more businesses in an industry agree to sell the same good or service at a set price.
period of significant decline in the total output, income, employment, and trade in economy.
Focusing on the production of specific goods so more products can be produced with the same amount of living.
Standard of living
Financial well-being of the average person in a country.
A system and marketplace for buying and selling stocks.
Lowest stage of a business cycle and marks the end of a recession.
the percentage of the labor force that is unemployed