| A | B |
|---|
| product | item produced in an economy |
| GDP | the total market value of all final goods and services produced in a country in 1 year |
| output | the amount produced |
| entrepreneur | a person who starts a new business |
| GDP per capita | the total amount of goods and services produced in a year divided by the population |
| standard of living | quality of life measured by how well people are able to meet their wants and needs |
| circular flow model | the ciruclar flow of resources , goods, services and money through the economy |
| sector | category |
| factor market | where factors of production are bought and sold |
| product market | where businesses sell goods and services to buyers |
| economic growth | an increase in the output of goods and services over time |
| productivity | a measure of how efficiently resources are used to create products |
| specialization | when businesses and people focus their work on one product or services |
| division of labor | breaking down a large job into smaller taskes each of which is done by a different workers |
| human capital | the knowledge skills and experience of the worker |
| capitalism | economic system in which private citizens own the factors of productions and decide how to use them to make money |
| free enterprise | economic system in which individuals and busineses are allowed to compete for profit with little government interference |
| voluntary exchange | when buyers and sellers have a transaction |
| profit | the money left over from the sale of goods or services after all costs have been paid |
| competition | the struggle between businesses with similar products to attract consumers |
| incentive | a reward offered to try to persuade people to take certain actions |
| laissez faire economics | belif that the govt should play only a small role in economy |
| Adam Smith | Scottish economist who wrote the Wealth of Nations and laid the foundations for a free market economy |
| Karl Marx | economist and philosopher who wrote Das Kapital and the Communist Manufesto and suggested the abolition of private property |
| proletariot | the working class |
| bourgousie | the capitalists or the owners |
| business cycle | alternating periods of economic growth and decline |
| recession | a trime of declining economic activity lasting six months or longer |
| depression | GDP and general economic hardship |
| unemployment rate | percentage of people in the civilian labor force who are not working but are looking for jobs |
| inflation | long term increase in the generla level of prices |
| recession | during a time of contraction what term do refers to when the GDP falls at least 6 straight months |
| contraction | part of the business cycle that is a period of economic decline |
| expansion | part of the business cycle that is a period of economic growth |
| trough | part of the business cycle that is the lowest point of an economic decline |
| non durables | Goods that only last a short amount of time like food or clothing |
| durables | goods that last for a relatively long time like appliances and carsgoods that last for a relatively long time like appliances and cars |
| depreciation | This is the loss of value of equipment or goods that is a result from normal wear & tear. |
| net exports | exports minus imports |
| depression | during a time of contraction what term do refers to when the GDP falls more than 18 straight months; a severe recession |
