Marketing Essentials chapter 3 vocab – Flashcards
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economy
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the organized way a nation provides for the needs and wants of its people
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resources
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all the things used in producing goods and services
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factors of production
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four categories: land, labor, capital, and entrepreneurship
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infrastructure
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the physical development of a country
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entrepreneurship
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the skills of people who are willing to invest their time and money to run a business
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scarcity
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the difference between wants and needs and available resources
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traditional economy
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traditions and rituals answer the basic questions of what, how, and for whom?
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market economy
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in the pure form of this economy there is no government involvement in economic decisions; individuals and companies own the means of production and businesses compete for consumers`
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command economy
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a system in which a country's government makes economic decisions and decides what, when, and how much will be produced and distributed; government controls all factors of production
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productivity
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the output per worker hour that is measured over a defined period of time
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Gross Domestic Product (GDP)
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the output of goods and services produced labor and property located within a country
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Gross National Product (GNP)
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the total dollar value of goods and services produced by a nation, including goods and services produced abroad by the nation's citizens and companies
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inflation
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rising prices
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consumer price index (CPI)
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measures the change in price over a period of time of some 400 specific retail goods and services used by the average urban household
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producer price index (PPI)
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measures wholesale price levels in the economy
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business cycle
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recurring changes in economic activity; includes expansion, recession, trough, and recovery
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expansion
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a time when the economy is flourishing; prosperity
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recession
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a period of economic slow-down that lasts for at least two quarters (6 months)
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depression
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a period of prolonged recession
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recovery
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the term used to signify a period of renewed economic growth following a recession or depression
