Understanding Canadian Business Chapter 2
inflation
a general rise of the prices of goods and services over time
CPI
a monthly statistic that measures the pace of inflation or deflation
depression
a sever recession
disinflation
a situation in which price increases are slowing
deflation
a situation in which prices are declining
brain drain
the loss of educated people to other countries
unemployment rate
the percentage of the labor force that is looking for a job
business cycles
the periodic rises and falls that occur in economies over time
market price
the price determined by S and D
demand
the quantity of products that consumers are willing to purchase
supply
the quantity of products that manufacturers or owners are willing to sell
economics
the study of how society chooses to employ resources to satisfy unlimited desires
resource development
the study of how to increase resources and creation of the conditions that will make better use of them
gdp
the total value of goods and services produced in a country in a given year -major influence is productivity
monopoly
one seller all the market power
frictional unemployment
people who quit because they didn't like the job
cyclical unemployment
recession or similar downturn in the business cycle
invisible hand
Adam Smith -as people try to improve their own situations, their efforts help the economy as a whole
seasonal unemployment
demand caries during the year -ski instructor
stagflation
economy is slowing but prices are still going up
oligopoly
few sellers lots of market power
micro
looks at the behavior of people and organizations in particular markets
macro
looks at the operation of a nations economy as a whole
socialism
most basic business should be owned by the government profits can be evenly distributed among the people
perfect competition
many sellers no market power
monopolistic competition
many sellers selling similar products
mixed economy
mix of free and command
recession
two or more consecutive quarters of decline in the GDP
structural unemployment
unemployment caused by restructuring of firms
capitalism
where most if the factors of production and distribution are privately owned and operated for profit
command economy
where the government determines what goods and services are produced
free market economy
where the market determines what goods and services are produced
communism
where the state makes all economic decisions and owns all major factors of production
