The Business Cycle
Business cycles are periods of _______ and ________ measured by GDP.
growth
contraction
It is a total monetary value of goods and services produced in a country during one year.
Gross Domestic Product
Supply and demand are __________ factors that affect the business and marketing environment.
economic
Economic resources are the goods and services businesses use to meet consumer ___________________.
wants and needs
Market structure where a single business has exclusive control of a market
Monopoly
True or False:
Business Cycles have no impact on the economy.
Business cycles are periods of growth and contraction measured by GDP.
It is a general increase in prices and fall in the purchasing value of money. Inflation has an economic impact on business and may occur for different reasons.
Inflation
________ refers to the amount of goods that consumers want.
Demand
Businesses rely on the concept of economic resources to get what they need to ________ products or _______ services.
produce
provide
Market structure where a small number of businesses have control of a market
Oligopoly
Lowest point in a business cycle is called its ______.
trough
Banks and creditors distribute loans and charge the borrower interest, a sum of money paid in exchange for a loan. A percentage of a loan that is charged to the borrower incrementally is known as the ___________.
Interest Rates
________ refers to the amount of goods that are available to consumers.
Supply
Include all of a nation’s natural resources, or raw materials found in nature.
Land
Many businesses in a market are selling products that are slightly different from one another
Monopolistic Competition
Highest point in a business cycle is called its ______.
peak
The percentage of people without jobs and wages, rises. An economy’s unemployment rate reflects the state of the economic system.
Unemployment Rate
The interaction of supply and demand affects the prices of products because when supply is low and demand is high, prices are also __________.
high
Also known as human resources, it is the human work used to produce goods and services.
Labor
Many businesses selling identical products (does not really exist)
Perfect Competition
_________ are measured from the lowest point of a cycle to the highest point.
Expansions
This is a measure of economic output in terms of a worker’s input.
Productivity
The point at which supply and demand meet.
Equilibrium
Refers to the equipment a business uses to produce goods and provide services. Buildings and machinery are two common sources that a business uses in its daily operations.
Capital
Market structure refers to how a market is structured based on its business __________. Market structures have an effect on the price and quality of goods and services produced.
competition