Unit 2 Part 2 Economics & Capitalism Review

buildings, tools, machines and other equipment used to produce the goods customers buy

what happens to consumer spending and sales during recession

what happens to overall spending when unemployment is high

what happens to unemployment during a recession

Under Capitalism, government controls factors of production

the total amount of a specific good or service available to consumers at a specific time

What is an interest rate

the social science dealing with the production, distribution, and consumption of goods and services

inflation caused by a rise in production costs

a decline in economic performance that lasts several months

key components of Capitalism include the right to own private property, price set by supply/demand and

the rate of rising prices of products and services

the value of all goods/services produced in a country during a given time period

What happens to a business if interest rates go up

consumers’ desire to purchase goods and services and willingness to pay a price for a specific good