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BusAd101 ch. 3
Ball State Business
| Question | Answer |
|---|---|
| Microeconomics | Study of small economic units, such as individual consumers, families, and business. |
| Economics | Social Science that analyzes the choices people and governments make in allocating scarce resources. |
| Macroeconomics | Study of a nation's overall economic issues, such as how an economy maintains and allocates resources and how a government's polocies affect the standards of living of its citizens. |
| Demand | Willingness and ability of buyers to purchase goods and service. |
| Supply | Willingness and ability of sellers to provide goods and services. |
| Demand Curve | Graph of the amount of a product that buyers will purchase at different prices. |
| Supply Curve | Graph that shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand. |
| Equilibrium Price | Prevailing market price at which you can buy an item. |
| Pure Competition | Market structure in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence of price. |
| Oligopoly | Market in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors. |
| Monopoly | Market in which a single seller dominates trade in a good or service for which buyers can find no substitutes. |
| Regulated Monopolies | Local, State, or Federal Government grants exclusive rights in a certain market to a single firm. |
| Planned Economy | government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms. |
| Socialism | Economic system characterized by ownership and operation of major industries such as communications. |
| Communism | economic system in which all property would be shared equally by the people of a community under the direction of a strong central government. |
| Mixed Market Economy | Economic System that draws from both types of economies to different degrees. |
| Privitization | conversion of government-owned and operated companies into privately held business. |
| Recession | Cyclical economic contraction that lasts for six months or longer. |
| Productivity | Relationship between the number of units produce and the number of human and other production inputs necessary to produce them. |
| Gross Domestic Product (GDP) | Sum of all goods and services produced within a country's boundaries during a specific time period such as a year. |
| Inflation | rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production. |
| Core Inflation Rate | inflation rate of an economy after energy and food prices are removed. |
| Hyperinflation | economic situation characterized by soaring prices. |
| Deflation | Opposite of inflation, occurs when prices continue to fall. |
| Consumer Price Index (CPI) | Measurement of the monthly average change in prices of goods and services. |
| Unemployment Rate | Percentage of the total workforce actively seeking work but are currently unemployed. |
| Frictional Unenployment | applies to members of the workforce who are temporarily not working but are looking for jobs. |
| Seasonal Unemployment | Joblessness of workers in a seasonal industry. |
| Cyclical Unemployment | people who are out of work because of a cyclical contraction in the economy. |
| Structural Unemployment | people who remain unemployed for long periods of time, often with little hope of finding new jobs like their old ones. |
| Monetary Policy | government actions to increase or decrease the money supply and change banking requirements and interest rates to influence banker's willingness to make loans. |
| Expansionary Monetary Policy | increases the money supply in an effort to cut costs of borrowing and stimulates employment and economic growth. |
| Restrictive Monetary Policy | Reducing the money supply to curb rising prices, overexpansion, and rapid economic growth. |
| Fiscal Policy | government spending and taxation desicions designed to control inflation, reduce unemployment, improve general welfare of citizens, and encourage economic growth. |
| Budget | Organization's plan for how it will raise and spend money during a given period of time. |
| Budget Deficit | Situation in which the government spends more than the amount of money it raises through taxes. |
| National Debt | Money owned by the government to individuals, businesses, and government agencies who purchase Treasury Bills, Treasury Notes, and Trreasury Bonds sold to cover expenditures |
| Budget Surplus | excess funding that occurs when government spends less than the amount of funds raised through taxes and fees. |
| Balanced Budget | Situation in which total revenues raised by taxes and fees equal total proposed government spending for the year. |
Created by:
aburris
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