| A | B |
|---|
| phase of the business cycle is characterized by low inflation, with a modest rise in the GDP, profits, and employment | expansion |
| economic system in which a central planning authority owns most of the factors of production | command economy |
| organized way for a country to decide how to use its productive resources | economic system |
| percentage of total receipts does a business use to pay its costs | 95 percent |
| Commonly called modest inflation, the phase of the business cycle characterized by decline in growth and employment | contraction |
| Consumer goods are often in short supply in THIS type of country | communist country |
| Growth, profit, and employment reach their highest level during which phase of the business cycle | peak |
| # of items the government use when it tracks prices to calculate the Consumer Price Index | more than 100 |
| business earns an average profit and has yearly receipts of approximately $500,000, how much would the owner likely earn in a year | $25,000 |
| type of economy does a central planning authority determine what, how, and for whom goods and services are produced | command |
| Nearly any individual may start a business in THIS economy | capitalist |
| four types of utility | Form, time, place, possession |
| Steel that is used to produce tools and machinery | capital good |
| freedom to own land and other property is a trait of THIS economy | capitalism |
| lowest point in a business cycle | trough |
| when a good or service is privatized THIS is what happens | Costs decrease and efficiency increases. |
| Total supply exceeds demand during THIS phase of the business cycle | recession |
| the number of like products that will be offered for sale at a particular time and at a particular price | supply |
| When the production of consumer goods increases, the production of THIS decreases | capital goods |
| During a recession demand is NOT likely to do what | Increase |
| A decline in the GDP that continues for six months or more. | recession |
| A long and severe drop in the GDP. | depression |
| A pattern of irregular but repeated expansion and contraction of the GDP. | business cycle |
| A rapid rise in prices caused by an inadequate supply of goods and services. | inflation |
| Anyone who creates utility. | producer |
| Rivalry among sellers for consumers’ dollars. | competition |
| The ability of a good or service to satisfy a want. | utility |
| The human effort, either physical or mental, that goes into the production of goods and services. | labor |
| The number of like products that will be offered for sale at a particular time and at a particular price | supply |
| The number of products that will be bought at a given time at a given price. | demand |
