BUSI ch. 2
recovery
After the economy begins to grow again it enters into an expansionary or ________ phase
peak
A ___________ occurs when an economic growth is at its most robust point.
The social environment
Gender, age, and diversity are part of which environment? an interconnected system of different demographic factors, such as the race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics of a population.
complementary
Products and services that go with each other and are consumed together are considered _______ goods.
producer price index
The _______________ is a coincident indicator that tracks the average change in prices at the wholesale level.
consumer price index
The ________________ is a benchmark used to track changes in the price of goods and services that consumers purchase over a period of time.
Social enviornment
The _____ environment is an interrelated system of diverse demographic factors, such as the race, ethnicity, gender, age, income distribution, sexual orientation, and other characteristics of a population.
Communism
Which term describes an economic system in which a country's government makes all economic decisions and controls all the social services as well as many of the major resources required for the production of products and services?
Inflation
Which term describes an increase in the general level of prices over time?
Gross domestic product
_____ measures how productive a country is and the total market value of final products and services produced in that country in a year.
Globalization economy
________ is an effort toward a more interconnected and interdependent world economy.
open market operations
__________ is/are the key instrument the Fed uses in its monetary policy; purchasing and selling U.S. Treasury and federal agency bonds on the open market. Through its monetary policy, the Federal Reserve affects the nation's money supply and helps shape the direction of the economy.
Perfect competition
______________ occurs when there are many buyers and sellers of products that are almost equal and any seller can easily enter and/or exit the market. When these conditions exist, no single supplier can influence the price.
Duopoly
_______________ occurs when only two suppliers exist in a market
mixed economy
a blend of market and planned economies
supply curve
a tool used to graph the relationship between supply and price. Law of supply means the amount supplied will increase as the price increases, and if the price decreases, the amount of the product to be supplied will also decrease.
Monopolistic competition
characterized by many sellers that sell slightly different products at slightly different prices.
Equilibrium
equal balance between any powers, influences, etc.; equality of effect.
Substitute
goods that can replace the primary goods.
Fiscal policy
is a determinant of the appropriate level of taxes and government spending.
Productivity
measures the quantity of goods and services that a firm's human and physical resources can produce in a given time period.
Complementary goods
products and services that go with each other and are consumed together.
supply
refers to how much of a good or service is available for purchase at any given time.
depression
A __________ occurs when there is a very long or severe recession.
planned economic system
A type of economy in which the government has more control over what is produced, the resources to produce the goods and services, and the distribution of the goods and services. In a market economy, individuals are more able make their own economic decisions.
oligopoly
A(n) _______ is a form of competition where only a limited number of sellers exist, each with a fairly large share of the market.
market under monopolistic competition
A(n) ______________ occurs when there are many purchasers and sellers and the goods are similar but not identical.
perfect competition
In a ___________ market, the product being sold is virtually identical across suppliers and sells for the same price.
. market economy
In a ___________, individuals are able to make many of their own economic decisions.
Competition
In a market-based economy, which of the following is a fundamental force? A. Government B. Natural resources C. Competition D. Social environment E. Technology
Monopoly
In China, there is a single provider of tobacco, China National Tobacco Corp.,that has control of all or nearly all of its market. This is an example of ______. Monopolies can also happen in a local or a regional market.
trough
Question Help A _______ occurs when the recession hits bottom.
The federal funds rate
The interest rate Bank of America would charge Citibank when borrowing funds overnight is known as _______.
revenue
The money that a company brings in by selling its products or services refers to_______.
Microeconomics
The study of how individual businesses, families, and shoppers make decisions to distribute their limited resources in the exchange of products and services is known as _________.
economics
The study of how people and businesses make decisions to best meet wants, needs, and desires with limited resources is known as _______.
Capitalism
What term describes an economic system that permits freedom of choice and encourages private possession of the resources necessary to produce and sell the products and the services people use? -an economic system that allows freedom of choice and encourages private ownership of the resources required to make and provide the goods and the services people use. -a major influence in the Western world's economic systems.
The producer price index
What term is a coincident indicator that tracks the average change in prices at the wholesale level?
Structural unemployment
What term refers to lasting unemployment that takes place when an industry changes in such a way that those jobs are entirely ended? For example, robots have replaced many automobile workers, and computers have replaced many newspaper typesetters.
Price expectations
Which of the following is NOT a determinant of demand? A.Price expectations B.Changes in income levels C.Substitute goods D.Population changes E.Consumer preferences
Changes in income level
Which of the following is NOT a determinant of supply? A. The number of suppliers B. Changes in income level C. The price of substitute goods D. Changes in resource prices E. Price expectations
Global economy
Which of the following is NOT a type of economic system? A. Controlled economy B. Planned economy C. Mixed economy D. Free market economy E. Global economy
A green economy factors ecological concerns into business decisions
Which of the following is true of a green economy? A. A green economy is the same thing as globalization. B. A green economy cannot exist in a market-based economy. C. A green economy focuses on free markets, private ownership, and limits on government intervention. D. A green economy can only take place as a business-to-business (B2B) entity in an e-commerce model. E. A green economy factors ecological concerns into business decisions.
. Demand
Which of the following refers to how much of a good or service people want to buy at any given time?
recession
Which term describes a decline in the GDP for two or more consecutive quarters?
Frictional unemployment
temporary unemployment that results when workers move between jobs, careers, and locations.
Law of supply
the fact that the quantity supplied will increase as the price increases, and if the price decreases, the quantity of the product to be supplied will also go down?
supply and demand study
the study of how individual businesses, households, and consumers make decisions to allocate their limited resources in the exchange of goods and services. When a realtor analyzes the number of existing houses that are already for sale in the local market, the realtor is using the microeconomic principles of supply and demand.
M-1
what ________represents coins and bills, traveler's checks, and checking accounts and constitutes the narrowest measure of our money supply.
Deflation
__________ is a constant decrease in prices over time.