Chapter 1: Exploring the World of Business and Economics

Master business and economics: explore capitalism, GDP, inflation & more!

capitalism a system where individuals own and operate the majority of businesses economics a study of how wealth is created and distributed federal deficit the government's debt productivity the average level of output per worker per hour product differenitation the process of distinguishing Colgate from Crest toothpaste business an organized effort to produce and sell goods and services for a profit entreprenuer a person who takes the risk and invests in a business gross domestic product value of all goods and services produced within a country during a one-year period barter system of exchange factory system materials, machinery, and workers are assembled in one place Demand is a relationship between prices and the quantities purchased by buyers. relationship between prices and the quantities offered by producer. quantity of goods available for purchase. is measured by comparing the gross domestic product with supply by-product of communism. The process of separating work into distinct tasks is called bartering networking specialization a factory system a domestic system What term implies that there shall be no government interference in the economy? market economy free-market economy command economy laissez-faire socialism When the level of prices in an economy rise, it's called prosperity recession depression recovery inflation The total of all federal deficits is called depression fiscal policy gross domestic product national debt business cycle The ability to work well with many types of people in a workplace is referred to as workplace differentiation cultural diversity economic stability career unity employee magnification Best Buy and Walmart are both examples of production intermediaries manufacturing businesses service businesses marketing intermediaries small businesses The study of the national economy and the global economy is referred to as factors of the economy microeconomics macroeconomics laissez-faire capitalism a command economy How well off an individual or a society is, mainly in terms of want satisfaction through goods and services is referred to as microeconomics national satisfaction index economic standard standard of living global comparison measure A monthly index that measures changes in prices that consumers pay for goods is referred to as the prosperity index producer's price index prosperity price predictor inflation rate index consumer price index