| A | B |
|---|
| economy | organized way a nation provides for the needs/wants of its people |
| resources | all the things used in producing goods & services |
| factors of production | 4 categories: land, labor, capital & entrepreneurship |
| infrastructure | physicl development of a country |
| entrepreneurship | skills of people who are willing to invest their time & money to run a business |
| scarcity | difference btwn wants/needs and available resources |
| traditional economy | traditions & rituals that answer the basic questions of what/how/whom |
| market economy | when government is not involved in economic decisions |
| command economy | when country's government makes economic decisions & decides what/when/how much will be produced & distributed |
| productivity | output per worker thour that is measure over a defined period of time |
| gross domestic product (GDP) | output of goods & services produces by labor & property located within a country |
| gross national product (GNP) | total $ value of goods & services produced by a nation, including goods & services produced abroad by US citizens & companies |
| inflation | refers to rising prices |
| consumer price index (CPI) | measures the change in price over a period of time of some 400 specific retail goods & services used by the average urban household |
| producer price index | measures wholesale price levels in the economy |
| business cycle | these recurring changes in economic activity |
| expansion | time when the economy is flourishing, sometimes referred to as a period of prosperity |
| recession | period of economic slowdown that lasts for at least 2 quarters or 6 months |
| depression | a period of prolonged recession |
| recovery | a period of renewed economic growth following a recession or depression |
