| A | B |
|---|
| FREE ENTERPRISE | The system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it |
| PRODUCTIVITY | The average level of output per worker per hour |
| INFLATION | A general rise in the level of prices |
| SUPPLY | Quantity of a product that producers are willing to sell at each of various prices |
| DEMAND | quantity of a product that buyers are willing to purchase at each of various prices |
| PROFIT | What remains after all business expenses have been deducted from sales revenue |
| ECONOMICS | The study of how wealth is created and distributed |
| GROSS DOMESTIC PRODUCT | The total $ value of all goods and services porduced by all people w/n the boundaries of a country during a one yr pd. |
| GROSS NATIONAL PRODUCT | The totak $ value of all goods and services produced by the citizens of a specific nation during a one yr pd. |
| RECESSION | Two consecutive 3-month pds. of decline in a country's gross domestic product |
| DEPRESSION | A severe recession that last longer than a recession |
| BUSINESS | The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs |
| ENTRPRENEUR | A person who risks time, effort, and noney to start and operate a business |
| ADAM SMITH | Lasissez Faire (let them do as they see fit)> The father of capitalism |
| KARL MARX | Father of Communism |
| COMPETITION | Rivalry among businesses for sales to potential customers |
| STABILITY | The condition in which the money available in an economy and the goods produced in the economy remains approx. equal |
| PROPORTIONAL TAX | It is sometimes called a flat tax |
| PROGRESSIVE TAXATION | A tax policy based on the ability to pay. |
| PROPORTIONAL TAXATION | A tax policy wherein the tax rate remains the same regardless of the amount on which the tax is imposed |
| REGRESSIVE TAXATION | A tax policy wherein the actual tax rate decreases as the taxable amt. increases |
| SOCIALISM | The government owns and operates SELECTED major industries |
| COMMUNISM | The government owns and operates ALL sources of production |
| MANAGEMENT | The process of planning, organizing, directing, and controlling an organization's resources in order to achieve its goals |
