Not True/False
The different people or groups of people who are affected by an organization’s policies, decisions, and activities
STAKEHOLDERS
A general rise in the level of prices is called
INFLATION
The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs
BUSINESS
The reward business owners receive for producing goods and services that customers want.
PROFIT
This term describes Smith’s capitalistic system and implies that there should be no government interference in the economy.
LAISSEZ-FAIRE
The recurrence of periods of growth and recession in a nation’s economic activity
BUSINESS CYCLE
The study of the national economy and the global economy is called
MACROECONOMICS
These types of businesses include things such as haircuts, legal advice, or tax preparation
SERVICE BUSINESSES
The study of the decisions made by individuals and businesses
MICROECONOMICS
An economy that exhibits elements of both capitalism and socialism
MIXED ECONOMY
This is defined as two or more consecutive three-month periods of decline in a country’s GDP
RECESSION
Today, the U.S. economy is often characterized as a __________ economy.
MIXED
These businesses process various materials into tangible goods.
MANUFACTURING BUSINESS
The resources used to produce goods and services are called
FACTORS OF PRODUCTION
Federal Reserve’s decisions that determine the size of the supply of money in the nation and the level of interest rates are called
MONETARY POLICY
An economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production
COMMAND ECONOMY
Many economists refer to the average level of output per worker per hour as
PRODUCTIVITY
These are the organized effort of individuals to produce and sell for a profit, the goods and services that satisfy society’s needs through the facilities available on the Internet
E-BUSINESS
A term created by Adam Smith to describe how an individual’s personal gain benefits others and a nation’s economy
INVISIBLE HAND
Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
FISCAL POLICY
Adam Smith came from this country
SCOTLAND
What are the four states in a business cycle?
Peak, Recession, Trough, Recovery
This remains after all business expenses have been deducted from sales revenue
PROFIT
An economic system in which individuals own and operate the majority of businesses that provide goods and services
CAPITALISM
The total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period—usually a one-year period.
GROSS DOMESTIC PRODUCT