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| Organization that provides goods or services to earn profits. |
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| difference between a business's revenues and its expenses |
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| Everything outside an organization's boundaries that might affect it. |
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| The environment in which a firm conducts its operations and derives its revenues. |
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Definition
| Domestic Business Environment |
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| The international forces that affect a business. |
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| Global Business Environment |
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| All the ways by which firms create value for their constituents. |
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Definition
| Technological Environment |
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| The relationship between business and government. |
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Definition
| Political-Legal Environment |
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| The customs, mores, values, and demographic characteristics of the society in which an organization functions. |
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Definition
| Sociocultural Environment |
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Term
| Relevant conditions that exist in the economic system in which a company operates. |
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Term
| A nation's system for allocating its resources among its citizens. |
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| Resources used in the production of goods and services-labor, capital, entrepreneurs, physical resources, and information resources. |
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| Physical and mental capabilities of people as they contribute to economic production. |
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Term
| Labor is sometimes called ____. |
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| Funds needed to create and operate a business enterprise. |
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| Individual who accepts the risks and opportunities involved in creating and operating a new business venture. |
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| Tangible items organizations use in the conduct of their businesses. |
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| Data and other information used by businesses. |
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| Economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. |
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| Economy in which individuals control production and allocation decisions through supply and demand. |
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| Political system in which the government owns and operates all factors of production. |
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| Mechanism for exchange between buyers and sellers of a particular good or service. |
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| System that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive. |
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| Economic system featuring characteristics of both planned and market economies. |
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| Process of converting government enterprises into privately owned companies. |
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| Planned economic system in which the government owns and operates only selected major sources of production. |
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| The willingness and ability of buyers to purchase a good or service. |
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| The willingness and ability of producers to offer a good or service for sale. |
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| Principle that buyers will purchase more of a product as its price drops and less as its price increases. |
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| Principle that producers will offer more of a product for sale as its price rises and less as its price drops. |
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Term
| Assessment of the relationships among different levels of demand and supply at different price levels. |
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Definition
| Demand and Supply Schedule |
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| Graph showing how many units of a product will be demanded at different prices. |
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| Graph showing how many units of a product will be supplied at different prices. |
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Term
| Profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal. |
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Term
| Market price is also called ____. |
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| Situation in which quantity supplied exceeds quantity demanded. |
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| Situation in which quantity demanded exceeds quantity supplied. |
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| Economic system that allows individuals to pursue their own interests without undue governmental restriction. |
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| Vying among businesses for the same resources or customers. |
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| Market or industry characterized by numerous small firms producing an identical product. |
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| Market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors. |
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Term
| Market or industry characterized by a handful of sellers with the power to influence the prices of their products. |
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| Market or industry in which there is only one producer that can therefore set the prices of its products. |
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| Industry in which one company can most efficiently supply all needed goods or services. |
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Term
| A statistic that helps assess the performance of an economy. |
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Definition
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Term
| Short-term pattern of economic expansions and contractions. |
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Term
| The total quantity of goods and services produced by an economic system during a given period. |
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| The total quantity and quality of goods and services people can purchase with the currency used in their economic system. |
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Term
| Total value of all goods and services produced within a given period by a national economy through domestic factors of production. |
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Definition
| Gross Domestic Product (GDP) |
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Term
| Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located. |
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Definition
| Gross National Product (GNP) |
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Term
| Gross domestic product (GDP) adjusted to account for changes in currency values and price changes. |
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Definition
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Term
| Gross domestic product (GDP) measured in current dollars or with all components valued at current prices. |
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| The principle that exchange rates are set so that the prices of similar products in different countries are about the same. |
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| A measure of economic growth that compares how much a system produces with the resources needed to produce it. |
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| The economic value of all the products that a country exports minus the economic value of all the products it imports |
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Term
| The amount of money the government owes its creditors. |
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Term
| Condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate. |
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| Occurs when widespread price increases occur throughout an economic system. |
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Definition
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Term
| A measure of the prices of typical products purchased by consumers living in the urban areas. |
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Definition
| Consumer Price Index (CPI) |
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Term
| The level of joblessness among people actively seeking work in an economic system. |
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| A period during which aggregate output, as measure by GDP, declines. |
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Term
| A prolonged and deep recession. |
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Term
| Policies used by a government regarding how it collects and spends revenue. |
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Definition
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Term
| Policies used by a government to control the size of its money supply. |
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Term
| Government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices. |
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