UNIT 6
Economics for Managing the Small Business
LESSON 9
Flashcards
1. Microeconomics: The study of individual economic units, such as households and businesses, and how they make decisions regarding resource allocation.
2. Macroeconomics: The study of the overall economy, including topics such as inflation, unemployment, and economic growth.
3. Market equilibrium: The point at which the quantity demanded of a good or service equals the quantity supplied, resulting in a stable price.
4. Supply and demand: The fundamental concept in economics that states the quantity of a good or service supplied will increase as its price increases, while the quantity demanded will decrease as its price increases.
5. Elasticity: A measure of how responsive the quantity demanded or supplied of a good or service is to changes in price.
6. Opportunity cost: The value of the next best alternative that is foregone when making a decision.
7. Monopoly: A market structure in which a single firm is the sole provider of a good or service, giving them significant market power.
8. Perfect competition: A market structure in which there are many buyers and sellers, selling identical products, and no single buyer or seller has control over the market price.
9. Market failure: When the market does not efficiently allocate resources, resulting in an inefficient outcome, such as overproduction or underproduction.
10. Fiscal policy: The use of government spending and taxation to influence the overall economy, often used to stimulate or slow down economic growth.
11. Monetary policy: The use of changes in the money supply or interest rates to influence the overall economy, often used to control inflation or stimulate economic growth.
12. Gross domestic product (GDP): The total value of all goods and services produced within a country in a specific time period, usually one year.
13. Inflation: A general increase in prices, resulting in a decrease in the purchasing power of money.
14. Unemployment rate: The percentage of the labor force that is actively seeking employment but is unable to find a job.
15. Economic indicators: Statistical data that provide insights into the overall health and performance of an economy, such as GDP, inflation rate, and unemployment rate.