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Flashcards in Chapter 2 How Economic Issues Affect Business Deck (20):
1

Macroeconomics

The part of the Economic study that looks at the operations of a nations economy as a whole

2

Microeconomics

Part of the economic study that looks at the behaviour of people and organizations in particular markets

3

Capitalism

An Economic system in which all or more of the factor of production and distribution are privately owned and operated

4

Supply

Quantity of products that manufacturers or owners are willing to sell and different prices at a specific time

5

Demand

Quantity of products that people are will the buy at different prices at specific times

6

Market price

Price determined by supply and demand

7

Perfect competition

Market situation when there are many sellers in a market and no seller is large enough to dictate the price of products

8

Monopolistic competition

Market situation when large number of seller produce products that are similar but perceived by buyers as different

9

Oligopoly

A form of competition in which just a few sellers dominate the market

10

Monopoly

A market in which there is one seller for a product or service

11

Socialism

An Economic system based on the premise that some if not most basic business should be owned by the government so that profits can be distributed among the people

12

Free market economy

Economy in which the market largely determined what goods and services are produced who gets them and how the economy grows

13

Command economy

And economy in which the government decides what goods and services are produced, who gets them and how the economy will grow

14

Mixed economy

Economic system in which some allocation of resources is made by the market and some by the government

15

Gross domestic product

Total value of goods and services produced in a given year

16

Inflation

General rise in price of goods and services over time

17

Disinflation

Situation in which price increases are slowing

18

Deflation

Situation in which prices are declining

19

Stagflation

Situation in which the economy is slowing but prices are going up regardless

20

Economics

Study of how society chooses to employ resources to produce goods and services & distribute them for consumption