Macroeconomics
What does GDP stand for?
Gross Domestic Product
The percentage of the labor force that is unemployed and actively seeking work.
Unemployment Rate
What is one advantage of a sole proprietorship?
Full control over decisions, simple to establish, all profits go to the owner.
What is a disadvantage of a corporation?
Complex setup, double taxation, extensive regulations.
The central bank of the United States that controls the money supply and helps keep the economy stable.
The Fed
The rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.
Inflation
the study of the overall functioning of an economy, focusing on inflation, unemployment, and growth.
Macroeconomics
What is a disadvantage of a partnership?
Joint liability, potential conflicts, profits must be shared.
What is a disadvantage of a sole proprietorship?
Unlimited personal liability, harder to raise capital, limited lifespan.
How does inflation affect purchasing power?
Inflation reduces how much money can buy
An economic system where decisions regarding investment, production, and distribution are driven by consumers and businesses with minimal government intervention.
Market Economy
An economic system where the government makes all economic decisions and controls the means of production.
Command Economy
What is an advantage of a corporation?
Limited liability, easier to raise capital, perpetual existence.
What needs to be considered when thinking about business ownership?
Liability, tax implications, management style, long-term goals.
What are the 4 stages of the business cycle?
Recession, depression, recovery, and peak
What are the three main indicators to determining an economies health?
GDP, Unemployment Rate, Inflation
An individual or business that creates goods or provides services.
Producer
What are some advantages of a partnership?
Shared decision-making, easier to raise funds, complementary skills.
The legal right to operate a business and make decisions about it.
Business Ownership
What happens to consumer spending during economic growth?
It increases
The total monetary value of all goods and services produced within a country’s borders during a specific time period, indicating the size and health of an economy.
GDP (Gross Domestic Product)
The institution that creates and enforces public policies in a society, regulating economic activities.
Government
What are some disadvantages of an LLC?
Varies by state, limited lifespan in some states, self-employment taxes may apply.
What are advantages to an LLC
Limited liability, flexible taxation, fewer formalities.
Actions by the Fed to manage the money supply and interest rates.
Monetary Policy