| A | B |
|---|
| scarcity | forces economies to make choices |
| Very high taxes | what socialist countries pay |
| Labor | Skilled and unskilled workers who work in the private and public sectors |
| infrastructure | highways, sewers, phone lines |
| command economies | governement mainly makes decisions |
| consumers | who decides what to produce in market economy |
| Failure or not of business | Consumers decide this by what they purchase |
| Mixed economy | Best describes US and really all other economies |
| Factors of production | land, labor, capital, infrastructure |
| economy | organized way a nation provides for its people |
| Land resource | water, animals, trees, anything from the sea |
| privatization | government sells its own property to individuals |
| depression (trough) | long recession |
| capital resources | money, machinery, supplies are examples |
| capitalist | economies that have a democratic form of government |
| Government | who decides in a communist country level of education |
| Lose job | Recession fear for employees |
| recovery | renewed economic growth |
| capital | money used to start a business |
| resources | all things used to produce goods and services |
| Communism | Where ALL people are assigned jobs |
| specialization | when each part of a finished product is done by one person |
| GNP | old measure that included goods & services produced elsewhere |
| standard of Living | measurement of goods and service that people have (quality of life) |
| Inflationary period | Government may raise interest rates during this time |
| economic slowdown | recession |
| Business Failure | This is determined by consumers according to whether or not they buy |
| Business Cycle | Reoccuring changes in economic activity |
| Expansion | Period when the economy is doing great! |
| The actions of business, government, and consumers | Factors that affect business cycles |
| PPI | the index that measures wholesale prices in the economy |
| CPI | The index that measures some 400 consumer products |
| Consumer confidence index | Measures how well consumers THINK the economy is going |
| Unemployment rate | the number of people who DON'T have jobs |
| Inflation | a general rise in prices |
| GDP | all of the goods and services produced in a nation in a given period of time |
| Components of GDP | Government spending, Personal spending, Business inventories, and net exports |
| Negative net exports | What happens when imports are greater than exports |
| Productivity | a measure of output per worker hour |
| Entrepreneurship | the skills of people who start and run a business |
