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| the production of goods and services |
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| anything that you can buy or sell; anything a person needs or wants |
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| the performance of duties for other peole |
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| someone that produces goods and services |
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| someone that uses goods and services |
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| cost to produce a product |
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| the profits you make before deducting expenses |
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| money made after paying expenses |
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supply> the amount of goods or services available to the customer
Demand>amount of goods or services that the consumer is willing and able to pay |
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| when there is an increase in supply prices tend to decrease and when there is a decrease in supply prices tend to increase |
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| If the price goes up there is a decrease in the amount demanded |
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| The law of supply and demand |
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| as the demand increases the price increases which attracts new suppliers who increase the supply bringing the price back to normal |
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| When multiple producers of a good or service compete for the consumer |
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| using currency to purchase goods and services |
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| the purchase of goods and services and promising to pay later |
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| the money invested by a porducer to produce things needed for the product to be made and sold |
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| a method of producing goods and services, where ownership of a buisness is held by private individuals; in capitalism private individuals invest thier own money to produce a good or service; in capitalism a private buisness owner makes his/her own descisions about what to produce, how to produce, how much to produce based on supply, demand, and competition |
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| when the government takes money from you and distributes it to other people that need it |
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| a person who sees a need (demand) for a particular good or service and invests his/her creativeness, knowhow, and capital to produce that good or service |
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| found in a very undeveloped country; agriculture is the main base of the economy, subsistance agriculture (having just enough for your family) generally speaking the economy is unchanged for a long time; found in third world countries with a lack of infrastructure making it difficult for the economy to change; no industry in traditional economy |
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in a command economy the government makes all of the economic descisions, there is no or very little private investment (capitalism;) the government decides how goods will be produced and how the goods and services will end up in the hands of the citizens
ex. European manors during the middle ages; Communism <--Karl Marx)- cuba, russia (during USSR), china (?;) ancient egypt |
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| individuals (enterprisers, private buisnessmen) make the economic descisions, the government has little or nosay; supply and demand in the marketplace will help the individual buisness owner make these descisions |
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a period of reduced economic growth; a significant decline in the production of goods and services spread across the entire economy which lasts for more than a few months. Generally speaking you'ren experiencing ressesion when the economic decline lasts for more than a few months, it lasts for approximatley 2/4 of the year (six months) In a recession there is a decline in personal income, a rise in unemployment, a decline in production of goods and services, and a decline in wholesale and retail
some current facts which support the fact that we are experiencing a recession:
1.2 million jobs have been lost this year
unemployment rate rose 6.5% last month
retail sales have dropped 2.6% in 2008
personal income has declined 3% |
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Term
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Definition
a prolonged or long lasting recession or significant downturn in the economy including declining buisness activity, falling prices, falling incomes, rising unemployment, rising inventories, public fear and panic
characteristics of the great depression (1929-1941):
25% unemployed (1/4 were unemployed)
7,000 banks failed
personal income dropped 20-50%
7 billion dollars of personal savings were frozen
29 million shares of stock were sold in 2 days
October 24th, 1929 Black Thursday
October 29th, 1929 Black Thursday |
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Definition
| a highly developed country |
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| an underdeveloped country |
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| the basic physical and organizational structures and facilities needed for the operation of a society or enterprise |
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| the basic physical and organizational structures and facilities needed for the operation of a society or enterprise |
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| everyone pays personalized taxes |
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| everyone pays the same taxes |
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| the shared responsibility among local, state, and federal governments |
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| those who make more money should pay a larger percentage of their income to taxes |
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| benefits received principal |
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| people that receive government funded programs should pay taxes on them |
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| these taxes are progressive according to an individuals income |
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| if you hold an investment that has increased value |
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| supports social security programs for the elderly |
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| 1.4 percent of your income; funds the healthcare for retired americans |
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| taxes on particular products (cigarettes) |
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| state taxes on anything you buy |
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| taxes on homes, businesses and land |
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