Business Essentials Chapters 1 & 2 Review

The total value of all goods and services produced in a country in one year.

Most economies in the world are mixed economies.

A period marked by high unemployment, weak consumer sales, and business failures.

Deflation results in lower buying power of money.

Economy in which goods and services are produced in the same way it has always been done.

Phase of the business cycle in which unemployment is low, businesses are producing lots and wages are good.

In which type of economy are the people given the most economic freedom?

As competition increases, prices will usually

Process of choosing which needs and wants will be satisfied.

In which of the following types of economies is the government's role the largest?

Equity refers to

A period in which demand, production and GDP growth decreases & unemployment begins to rise for 2 consecutive quarters.

Quantity of a good or service that producers are willing and able to provide.

Quantity of a good or service that consumers are willing and able to buy.

A period in which unemployment begins to decrease, consumer demand increases and GDP begins to rise.

Things available to be used to produce goods and services.

Economy in which resources are owned and controlled by the government.

Productivity would likely increase as a result of

Production output in relation to a unit of input. (Basically how much one worker can produce.)

Spending by businesses for items such as land, buildings, and equipment.

Represents the debt of an organization.

Private ownership of resources by individuals rather than by the government.

The method a country uses to answer the three economic questions.

Person who buys goods and services.

The unemployment rate includes people who are retired, too young to work and people who choose to stay home.

The place where supply and demand are equal.

Which of the following is a natural resource?

What is the basic economic problem?

Things that add comfort or pleasure to life.

Economic system in which the resources are owned and controlled by the people of that country.