economic system at work
businesses that are the only ones
selling a product or providing a service
Monopolies
After the economy peaks, economic activity begins to slow
Economic slowdowns are called
contractions
Corporations are owned by the
stockholders
The process of moving goods from
manufacturers to markets
Distribution
What is inflation
If prices increase faster than wages, people can’t buy as much
Hurts the purchasing power of the dollar, standards of living may decrease
businesses grew
bigger by benefitting from the development of new
technologies
Industrial Revolution
When the economy hits a low
trough/depression
involve less risk and guarantee
a fixed dividend every year
Preferred stocks
Growth of American society and
industries directly influenced by
Rail Roads
What are Recessions
Production, spending, and consumer demand decline during recessions
Businesses produce less which leads to higher unemployment
Unemployment decreases individual savings, which hurts the banks who lend money to businesses
represent the freedom to compete without unreasonable
governmental interference
Free-Enterprise Systems
What pulled the country out of the Great Depression?
The new deal
certificates stating how much the
original purchaser paid
Bonds
Selling goods in large quantities is called
mass marketing
What are three major causes of economic problems?
Inflation, unemployment and recessions
money invested in buildings, machines, and other forms of property to
produce goods or provide services
Capital
the economy is booming and GDP increases
Expansion
Some businesses provide
goods/services without seeking to
earn a profit
These are called
non-profit
organizations
means goods come from factories/producers already packaged or
wrapped
Standard packaging
American businesses compete with each other for customers
Free Competition
(rise in the costs of goods and services) often accompanies
expansion
Inflation
the most common form of
organization for large companies
Corporations
is where prices are stamped or bar-coded onto products
One-price system