| A | B |
|---|
| economy | The organized way a nation provides for the needs and wants of its people. |
| resources | All the things used in producing goods and services. |
| factors of production | Economic term for the four categories of resources: land, labor, capital, and entrepreneurship. |
| infrastructure | The physical development of a country, including its roads, ports, sanitation facilities, and utilities. |
| entrepreneurship | The process of starting and operating your own business. |
| scarcity | The difference between what consumers want and need and what the available resources are. |
| traditional economy | Traditions and rituals that answer basic questions of what, how, and for whom. |
| market economy | An economic system in which individuals and companies decide what will be produced, when and how it will be distributed. |
| command economy | An economic system in which the government decides what, when, and how much will be produced and distributed. |
| productivity | The output per worker hour that is measured over a defined period of time, such as a week, month, or year. |
| gross domestic product (GDP) | The output of goods and services produced by labor and property located within a nation. |
| gross national product (GNP) | The total dollar value of goods and services produced by a nation. |
| inflation | A period of rising prices. |
| consumer price index (CPI) | Measurement of the change in price over a period of time of approximately 400 retail goods and services used by the average urban household. |
| producer price index (PPI) | Measurement of wholesale price levels in the economy. |
| business cycle | Recurring changes in economic activity, such as the expansion and contraction of an economy. |
| expansion | A time when the economy is flourishing; also called prosperity. |
| recession | A period of economic slowdown that lasts for two quarters, or six months. |
| depression | A period of prolonged recession. |
| recovery | A period of renewed economic growth followed by a recession or depression. |
| What are the four key phases of the business cycle? | Expansion, Recession, Depression (Trough), and Recovery |
| What are the three goals of a healthy economy? | Increase productivity, decrease unemployment, and maintain stable prices |
| What are the five economic measurements? | Labor productivity, Gross domestic product, Inflation Rate, Standard of Living, and Unemployment rate |
