| A | B |
|---|
| Competition | Struggle between two companies |
| Monopoly | One company controls products; no competition |
| Price Competition | all factors are equal - focus on price |
| Non-price Competition | Focus on quality, reputation, service, and location |
| Oligopolies | a few companies have control over a product |
| Risk | Possibility of loss or failure |
| Profit | income after all costs and expenses are deducted |
| Supply | amount of product available |
| Demand | Consumer's willingness to buy a product |
| Surplus | production amounts larger than demanded |
| Shortages | Product demanded is not available |
| Business Cycle | production rising then fallying during expansion and contraction |
| Trough | period of low economic activity |
| Expansion | increased economic activity; GDP increases and unemployment decreasees |
| Peak | Economic activity is at its highest |
| Contraction | decreasing economic activity; GDP decreases and unemployment increases |
| Recession | Two or more quarters of GDP decreasing |
| Gross Domestic Product | total goods/services produced |
| Consumer Price Index | Used to measure inflation; cost of living index |
| Producer Price Index | measures wholesale price levels |
