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Intro to Business Chapter 2 Vocabulary

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Gross Domestic Product
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The total dollar value of all finals goods and services produced in a country during one year
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GDP per Capita
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Output per person- calculated by dividing GDP by the total population
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Unemployment rate
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The portion of people in the labor force who are not working
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Productivity
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The production output in relation to a unit of input, such as a worker
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Personal Income
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Refers to salaries and wages as well as investment income and government payments to individuals
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Retail Sales
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The sales of durable and non durable goods bought by consumers
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Business Cycle
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The movement of the economy from one condition to another and back again
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Prosperity
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A period in which most people who want work are working
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Prosperity
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A period when businesses produce goods and services are produced in record numbers
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Prosperity
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A period when wages are good
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Prosperity
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A period when GDP growth increases
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Recession
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A period when demand begins to decrease
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Recession
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A period when businesses lower production
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Recession
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A period when unemployment begins to rise
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Recession
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A period when GDP slows for two or more quarters of the calender year
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Depression
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A period with prolonged period of high unemployment
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Depression
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A Period with weak consumer sales
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Depression
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A period with business failures
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Recovery
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A phase when unemployment begins to decrease
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Recovery
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A phase when demand for goods and services increases again
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Recovery
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A phase when GDP begins to rise again
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Inflation
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An increase in the general level of prices ( It takes more money to buy the same amount of goods)
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Price Index
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A number that compares prices in one year with some earlier base year
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Deflation
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A decreases in the level of prices ( Prices are lower and people have less money to buy them)
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Capital Project
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Involves spending by businesses for items such as land, building, equipment and new products
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Stock
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Represents ownership in a corporation
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Equity
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Another name for stock
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Bond
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Represents debt for an organization
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Budget Surplus
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This occurs when a government spends less than in takes in
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Budget Deficit
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This occurs when a government spends more than it takes in
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National debt
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The total amount owed by the federal government