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Marketing Economics
Term | Definition |
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Economy | The system of production, distribution and consumption. The overall measure of currency. |
Free Market | Allows the market to go without government regulation. Supply and demand controls the prices and production. |
Competition | Rivalry between similar businesses leading to them wanting to be better than the other. Includes prices, products, offers, etc. |
Profit | The amount after subtracting the total cost from the total revenue. |
Price Competition | Competition to attract customers by price. |
Factors of Production | The productive resources of an economy. Land, capital and labor. |
Utility | The usefulness from the product. |
Place Utility | Making a product available where the consumer wants it. |
Possession Utility | Making it more appealing by giving the consumer the chance to own the product. |
Time Utility | The increased satisfaction created by marketing through making products available at the time consumers want them |
Market Economy | 1. (environments definition) An economic system in which decisions concerning production and consumption are made by individuals and organizations without intervention by a central planning authority. The economic "laws of supply and demand" operate |
Mixed Economy | - a system in which both the state and private sector direct the way goods and services are bought and sold |
Communism | - a political philosophy or ideology advocating holding the production of resources collectively |
Socialism | Any of various economic and political philosophies that support social equality, collective decision-making, distribution of income based on contribution and public ownership of productive capital and natural resources, as advocated by socialists. |
Capitalism | - a socio-economic system based on the abstraction of resources into the form of privately-owned money, wealth, and goods, with economic decisions made largely through the operation of a market unregulated by the state |
Productivity | - A measure of the economic output per unit of input of some resource, e.g., the economic output per hour of human labor. Gross Domestic Product (GDP) - An estimate of the total national output of goods and services produced in a single country in a |
Gross Domestic Product (GDP) | The money value of a nation's entire output of final commodities and services in a given period. |
Gross National Product (GNP) | A statistical measure maintained by the U.S. government that shows the trend of prices of goods and services (a market basket) purchased by consumers |
Consumer Price Index (CPI) | A statistical measure maintained by the U.S. government that shows the trend of prices of goods and services (a market basket) purchased by consumers |
Producer Price Index (PPI) - | A monthly price index of about 2,800 commodities prepared by the U.S. Bureau of Labor Statistics, formerly known as the wholesale price index. |
Inflation | An economic condition characterized by a continuous upward movement of the general price level. An increase in prices in a country that results in a decline in the purchasing power of consumers |
Standard of Living - | relative measure of the general well being of a person or group |
Unemployment Rate | - the percent of the total labor force without a job |
Supply | A schedule of the amounts of a good that would be offered for sale at all possible prices at any one instance of time. The number of units of a product that will be put on the market over a period of time. |
Demand | A schedule of the amounts that buyers would be willing to purchase at a corresponding schedule of prices, in a given market at a given time. The number of units of a product sold in a market over a period of time. |
Elastic | - A situation in which a cut in price increases the quantity taken in the market enough that total revenue is increased. A situation in which a given change in the price of an economic good is associated with a more than proportionate change in the quan |
Inelastic | A situation in which a cut in price yields such a small increase in quantity taken by the market that total revenue decreases. A situation in which the percentage of quantity taken in the market "stretches" less than the percentage drop in price. |
Equilibrium | A situation in which the quantity and price offered by sellers equals the quantity and price taken by buyers |