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SPA ECON 2

Terms and definitions for E2

TermDefinition
productive resources The four factors of production which every business needs - land, labor, capital, and entreprenuership
taxes a required payment to a local, state, or national government
public goods goods or services provided by the government for all of the citizens to use.
peak the highest point in the business cycle; also called a boom.
contraction the part of the business cycle during which business is slowing down.
trough the lowest part in the business cycle.
expansion the part of the business cycle during which business is growing; also called a recovery.
stability a condition of being consistent, steady, unchanging, and reliable.
inflation a rise in the price of goods and services
unemployment the state of being out of work, yet actively seeking a job
monetary policy Actions by the Federal Reserve to help stabilize the economy.
fiscal policy Actions by the federal government to help stabilize the economy.
land natural resources that are used to make goods and services.
labor the effort that people devote to a task for which they are paid
capital all property - machines, buildings, tools, and equipment - used to make goods and services.
entreprenuership the ability to start new businesses, and/or to introduce new products and ideas.
domestic produced (made) in the USA
foreign produced (made) in a country outside of the USA
Created by: markleyj
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