Business Chapter 1
meeting the needs of the present without compromising the ability of future generations to meet their own needs
the online interaction that allows people and businesses to communicate and share ideas, personal information, and informations about products or services.
an economy in which more effort is devoted to the production of services than to the production of goods
the organized effort of individuals to produce and sell through the internet, for a profit, the products and services that satisfy society's needs
the separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
a system of manufacturing in which all the materials, machinery, and workers require to manufacture a product are assembled in one place
a method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur
a system of exchange in which goods or services are traded directly for other goods or services without using money
standard of living
a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services.
an industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the public interest.
a market or industry with only one seller, and there are other barriers oto keep other firms from entering the industry.
a market or industry in which there are few sellers
the process of developing and promoting differences between one's products and all competitive products.
the price at which the quantity demanded is exactly equal to the quantity supplied. (refer to figure 1.7)
the quantity of a product that buyers are willing to purchase at each of various prices
the quantity of a product that producers are willing to sell at each of various prices
perfect (pure) compeition
the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product
rivalry among businesses for sales to potential customers
the total of all federal deficits
government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates
a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession
two or more consecutive three-month periods of decline in a country's GDP
the recurrence of periods of growth and recession in a nation's economic activity
producer price index (PPI)
an index that measures prices that producers receive for their finished goods
consumer price index (CPI)
a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
the percentage of a nation's labor force unemployed at any time
a general decrease in the level of prices
a general rise in the level of prices
Gross Domestic Product
the total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period.
the average level of output per worker per hour
an economic system in which the government decides what goods and services will be produced, how they will be, for whom will they, and who owns and controls the major factors of production
goods and services purchased by individuals for personal consumption
an economy that exhibits elements of both capitalism and socialism
an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices
a term created by Adam Smith to describe how an individual's personal gain benefits others and a nation's economy
derived from Adam Smith, an economic system in which individuals own and operate the majority of businesses that provide goods and services
a person who risks time, effort, and money to start and operate a business
What are the four factors of production?
CELL! Capital, Entrepreneurship, Land, Labor
factors of production
resources used to produce goods and services
the way in which people deal with the creation and distribution of wealth
the study of the national economy and the global economy
the study of the decisions made by individuals and businesses
the study of how wealth is created and distributed
all the different people or groups of people who are affected by the policies and decisions made by an organization
what remains after all business expenses have been deducted from sales revenue
the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
Managers must be able to perform five basic management functions?
planning, organizing, leading, motivating, and controlling
Cultural Diversity (workplace)
differences among people in a workforce owing to race, ethnicity, and gender
The system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it