Chapter 3
Buisnesses that have only one owner
Sole Proprietorships
This states that the quantity demanded rises as price falls, other things constant
What is a price ceiling?
the study of problems that affect the economy as a whole (lack of economic growth, recessions, unemployment, and inflation) and what to do about them
What is macroeconimcs?
the total market value of all final goods and services produced in an economy in a one-year period
What is Gross Domestic Product (GDP)
Buisnesses with two or more owners
Partnerships
This states that the quantity supplied rises as price rises, other things constant
What is the law of supply
What is a price flooring?
the upward or downward movement of economic activity that occurs around the growth trend
What is a business cycle?
This is a balance sheet of an economy’s assets and liabilities and it is a stock concept
What is wealth accounts
Businesses that are treated as a person, and are legally owned by their stockholders, who are not liable for the actions of the corporate “person”
Corporations
This is the horizontal sum of all individual demand (supply) curves
What is a market demand (supply) curve?
A tax that is levied on a specific good.
What is an excise tax?
a decline in real output that persists for more than two consecutive quarters of a year
A recession
This is the amount of goods and services produced measured at current prices
What is Nominal GDP
They supply labor and influence business decisions through consumer sovereignty
Households
When quantity demand equals quantity supplied
What is equilibrium?
This is an excise tax on an imported good
What is a Tariff
a cyclical downturn that is becoming an increasing part of the macroeconomic debate.
What is structural stagnation
This is a continual rise in the overall price level
What is inflation
This is based on government ownership of the means of production with economic activity governed by central planning
What is Socialism?
This happens when quantity demanded is greated than quantity supplied
What is prices tend to rise?
This increases equilibrium price and reduces equilibrium quantity
What is quantity restrictions?
the percentage of people in the economy who are willing and able to work but who cannot find jobs
The unemployment rate
This is the value of the productive capacity of the assets of an economy measured by the goods and services it can produce now and in the future
What is real wealth?