Business 1
Tangible items: Things that you can see and touch
Good
Define the problem
Who sets Demand?
Consumers
Most widely used measure of economic growth
GDP
General increase in the level of prices
Inflation
Intangible items: Produce at the same time they are consumed
Service
What is the last step in the decision making process
Review your decision
Who establishes supply?
Producers
GDP divided by total population
GDP per Capita
The cost of Money
Interest Rates
Name the three economic resources
Natural, Human, Capital
What are the four types of economies
Command, Market, Traditional and Mixed
The point where supply and demand equal
Market Price
How old do you have to be to be counted in the labor force
16
Four phases of the business cycle
Prosperity, Recession, Depression, Recovery
What does Scarcity mean
Not having enough
Four principles the US economic system are based on
Private Property, Freedom of Choice, Profit, Competition
What is the Y axis on the supply and demand graph
Price
What is the population of the United States
330-340 Million
When was our last Depression (years)
1929-1940
What is the basic economic problem
Unlimited wants and need and limited resources
Three economic questions
What is produced?
How is it produced?
Who does it Satisfy?
What is inelastic demand
Demand doesn't change no matter the price
What is the Population of China
1.4-1.5 Billion
What caused the recession in 2011
Baby Boomers Retiring