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Ch3: Marketing
Chapter 3: Political & Economic Analysis
Question | Answer |
---|---|
organized way a nation provides for the needs and wants of its people | economy |
all things used in producing goods and services | resources |
land, labor, capital, entrepreneurship | factors of production |
physical development of a country | infrastructure |
skills of people willing to invest time & money to run a business | entrepreneurship |
not enough; difference between needs & wants and available resources | scarcity |
traditions & rituals decide what, how, & for whom things will be produced | traditional economy |
no government is involved in economic decisions | market economy |
governement decides what, when, how much will be produced & distributed | command economy |
everything contained in earth or found in seas | land |
all people who work | labor |
money, factories, buildings, tools, raw materials, goods used in production process | capital |
output per worker hour measured over a period of time | productivity |
output of goods & services produced in a country in a year | GDP (Gross Domestic Product) |
total dollar value of goods & services produced by a nation at home or away | GNP (Gross National Product) |
rising prices | inflation |
measures the change in consumer price over a period of time | CPI (Consumer Price Index) |
measures wholesale levels in the economy | PPI (Producer Price Index) |
recurring changes in economic activity (expansion, recession, depression, recovery) | business cycle |
period of prosperity and growth | expansion |
period of economic slow-down that lasts at least 6 months | recession |
long period of recession (high unemployment, businesses close, customers don't buy, production drops) | depression |
period of renewed economic growth following a recession or depression | recovery |
What, How, For Whom? | 3 basic economic questions |