Ch. 1 Key Terms

Question 1

The percentage of the total labor force that is not working but is actively looking for work.

Accepted Answer

unemployment rate

Question 2

Factors, such as technological or legal conditions, that prevent new firms from competing equally with an existing firm.

Accepted Answer

barriers to entry

Question 3

An economic system characterized by government ownership of virtually all resources, government control of all market...

Accepted Answer

communism

Question 4

The study of how a society uses scarce resources to produce and distribute goods and services.

Accepted Answer

economics

Question 5

Short-term unemployment that is not related to the business cycle.

Accepted Answer

frictional unemployment

Question 6

The money left over after all costs are paid.

Accepted Answer

profit

Question 7

People who combine the inputs of natural resources, labor, and capital to produce goods or services with the intentio...

Accepted Answer

entreprenuers

Question 8

Tangible items manufactured by businesses.

Accepted Answer

goods

Question 9

A decline in GDP that lasts for at least two consecutive quarters.

Accepted Answer

recession

Question 10

An organization that exists to achieve some goal other than the usual budget deficits.

Accepted Answer

not-for-profit organization

Question 11

The use of monetary policy by the Fed to tighten the money supply by selling government securities or raising interes...

Accepted Answer

contractionary policy

Question 12

A graph showing the quantity of a good or service that people are willing to buy at various prices.

Accepted Answer

demand curve

Question 13

The situation in which the average of all prices of goods and services is rising.

Accepted Answer

inflation

Question 14

The amount of goods and services one worker can produce.

Accepted Answer

productivity

Question 15

The quantity of a good or service that businesses will make availiable at various prices.

Accepted Answer

supply

Question 16

The number of suppliers in a market.

Accepted Answer

market structure

Question 17

The general level of human happiness based on such things as life expectancy, educational standards, health, sanitati...

Accepted Answer

quality of life

Question 18

The practice of building, maintaining, and enhancing interactions with customers and other parties to develop long-te...

Accepted Answer

relationship management

Question 19

Upward and downward changes in the level of economic activity.

Accepted Answer

business cycles

Question 20

An organization that strives for a profit by providing goods and services desired by its customers.

Accepted Answer

business

Question 21

The money a company recieves by providing services or selling goods to customers.

Accepted Answer

revenue

Question 22

A graph showing the quantity of a good or service that businesses will make available at various prices.

Accepted Answer

supply curve

Question 23

The potential to lose time and money or otherwise not able to accomplish an organization&#x27;s goals.

Accepted Answer

risk

Question 24

Economies that combine several economic systems; for example, an economy where the government owns certain industries...

Accepted Answer

mixed economies

Question 25

A government&#x27;s programs for controlling the amount of money circulating in the economy and interest rates.

Accepted Answer

monetary policy

Question 26

The condition that occurs when the federal government spends more for programs than it collects in taxes.

Accepted Answer

federal budget deficit

Question 27

The inputs, such as tools, machinery, equipment, and buildings, used to produce goods and services and get them to th...

Accepted Answer

capital

Question 28

Inflation that occurs when increases in production costs push up the prices of final goods and services.

Accepted Answer

cost-push inflation

Question 29

The quantity of a good or service that people are willing to buy at various prices.

Accepted Answer

demand

Question 30

A market structure in which a few firms produce most or all of the output and in which large capital requirements or...

Accepted Answer

oligopoly

Question 31

Unemployment that occurs during specific seasons in certain industries.

Accepted Answer

seasonal unemployment

Question 32

Workers who create, distribute, and apply knowledge.

Accepted Answer

knowledge workers

Question 33

The total market value of all final goods and services produced within a nation&#x27;s borders each year.

Accepted Answer

gross domestic product (GDP)

Question 34

The situation that occurs when government spending replaces spending by the private sector.

Accepted Answer

crowding out

Question 35

The point at which quantity demanded equals quantity supplied.

Accepted Answer

equilibrium

Question 36

The application of science and engineering skills and knowledge to solve production and organizational problems

Accepted Answer

technology

Question 37

An index of the prices of a "market basket" of goods and services purchased by typical urban consumers.

Accepted Answer

consumer price index (CPI)

Question 38

Inflation that occurs when the demand for goods and services is greater than the supply.

Accepted Answer

demand-pull inflation

Question 39

Intangible offerings of businesses that can&#x27;t be held, touched, or stored.

Accepted Answer

services

Question 40

Unemployment that occurs when a downturn in the business cycle reduces the demand for labor throughout the economy.

Accepted Answer

cyclical unemployment

Question 41

The central banking system of the United States.

Accepted Answer

Federal Reserve System (the Fed)

Question 42

An index of the prices paid by producers and wholesalers for various commodities, such as raw materials, partially fi...

Accepted Answer

producer price index (PPI)

Question 43

The resources used to create goods and services.

Accepted Answer

factors of production

Question 44

The accumulated total of all of the federal government&#x27;s annual budget deficits.

Accepted Answer

national debt

Question 45

A market structure in which a single firm accounts for all industry sales of a particular good or service and in whic...

Accepted Answer

pure monopoly

Question 46

Unemployment that is caused by a mismatch between available jobs and the skills of available workers in an industry o...

Accepted Answer

structural unemployment

Question 47

The combination of policies, laws, and choices, made by a nation&#x27;s government to establish the system that determine...

Accepted Answer

economic system

Question 48

the subarea of economics that focuses on individual parts of the economy, such as households or firms.

Accepted Answer

microeconomics

Question 49

The value of what money can buy.

Accepted Answer

purchasing power

Question 50

Expenses incurred from creating and selling goods and services.

Accepted Answer

costs

Question 51

The study of people&#x27;s vital statistics, such as their age, gender, race and ethnicity, and location.

Accepted Answer

demography

Question 52

An economic system in which the basic industries are owned either by the government itself or by the private sector u...

Accepted Answer

socialism

Question 53

The combined talents and skills of the workforce.

Accepted Answer

knowledge

Question 54

The use of monetary policy by the Fed to increase, or loosen, the growth of the money supply.

Accepted Answer

expansionary policy

Question 55

A market structure in which a large number of small firms sell similar products, buyers and sellers have good informa...

Accepted Answer

perfect (pure) competition

Question 56

An increase in a nation&#x27;s output of goods and services.

Accepted Answer

economic growth

Question 57

An economic system based on competition in the marketplace and private ownership of the factors of production(resourc...

Accepted Answer

capitalism

Question 58

A market structure in which many firms offer products that are close substitutes and in which entry is relatively easy.

Accepted Answer

monopolistic competition

Question 59

The government&#x27;s use of taxation and spending to affect the economy.

Accepted Answer

fiscal policy

Question 60

The condition when all people who want to work and can work have jobs.

Accepted Answer

full employment

Question 61

A country&#x27;s output of goods and services that people can buy with the money they have.

Accepted Answer

standard of living

Question 62

The subarea of economics that focuses on the economy as a whole by looking at aggregate data for large groups of peop...

Accepted Answer

macroeconomics

Question 63

A cooperative agreement between business firms; sometimes called a strategic partnership

Accepted Answer

strategic alliance

Question 64

The movement of inputs and outputs among households, businesses, and governments; a way of showing how the sectors of...

Accepted Answer

circular flow

Ch. 1 Key Terms

Questions 65

Ch. 1 Key Terms

Questions 65