Chapter 2 Intro to Business

What is a business called who sells stocks?

Mowing your own lawn would be counted in GDP

A period in which most people are working, GDP is increasing, and wages are good.

A decrease in prices

Recovery in the business cycle occurs after a period of inflation

People who buy bonds are _________

The movement of the economy from one condition to another and back again is called?

In the United States, the personal savings rate is rather high

An increase in prices

How old do you have to be to be considered in the work force?

When a government spends more money than it takes in over a period of time

GDP per capita is found by dividing total GDP by the total work force

When unemployment begins to rise, demand begins to decrease, and businesses lower production

Salaries, wages, investment income, and govt. payouts are your what?

Compares the prices of a group of items each year to some earlier year

The total dollar value of all final goods and services produced each year in a country

Movement of the economy from one condition to another (the ups and downs)

When employment, demand for goods, and GDP start to rise again after being down

A monthly measure of the sales of durable and non-durable goods bought by consumers

The discount rate is the rate that financial institutions are given to borrow money.

Inflation can sometimes occur when the demand for goods and services is greater than the supply

This can be increased by an improvement in management techniques.

Percentage of people in the labor force who are looking for work, but unable to find work

The main cause of unemployment is the reduced demand for the goods and services.

If wages increase faster than gains in productivity, the price goes down

Represents ownership in a corporation

Represents the cost of money

The total amount owed to the federal government is called what?

People with poor credit pay a higher interest rate to borrow money than people with good credit

A well-run business should never need to borrow money