Business 1301 Chapter 2
the study of the choices that people, companies, and governments make in allocating those resources.
the study of a country's overall economic issues, such as the employment rate, the gross domestic product, and taxation policies.
A fiscal policy refers to actions that shape the economy by influencing interest rates and the supply of money.
What is money supply?
the total amount of money within the overall economy
The four degrees of competition are:
pure competition, monopolistic competition, oligopoly, and monopoly
an economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.
What does GDP stand for?
It stands for Gross Domestic Product and measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for inflation.
The unemployment rate includes:
everyone over 16 years old.
Inflation means that:
prices on average are rising.
The Consumer Price Index (CPI) measures the change in weighted–average price over time in a consumer "market basket" of goods and services that the average person buys each month.