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104 Cards in this Set
- Front
- Back
Buisness
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any activity that seeks to provide goods and services to others while operating at a profit.
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Profit
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The amount of money a business earns aboce and beyond what it spends for salaries and other expenses
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Entrepreneur
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A person who risks time and money to start and manage a business.
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Revenue
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The total amount of money a business takes in during a given period by selling goods and services.
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A Loss
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occurs when a business's expenses are more than its revenues.
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Risk
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The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.
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Standard of Living
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The amount of goods and services people can buy with the money they have.
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Quality of Life
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The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time and everything else that leads to satisfaction and joy
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Stakeholders
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all the people who stand to gain or lose by the policies and activities of a business.
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Outsourcing
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Contracting with other companies (often other countries) to do some or all of the functions of a firm (e.g. production or accounting).
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A Nonprofit organization
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an organization whose goals do not include making a personal profit for its owners or organizers.
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Social entrepreneurs
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people who use business principles to start and manage organizations that are not for profit and help countries with their social issues
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2 ways to succeed in in business
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1.) Rise up through the ranks of a large companies
2.) Start your own business |
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Factors of production
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1.) Land (natural resources)
2.) Labor (workers) 3.) Capital. (whatever is used for the production of goods) 4.) Entrepreneurship 5.) Knowledge |
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Business environment
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Consists of the surrounding factors that either help or hinder the development of businesses.
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Elements of the business environment. (5)
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1.) Economic and legal environment
2.) Technological encironment 3.) Competitive environment 4.) Social environment 5.) Global business environment |
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Technology
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everything from phones and coopiers to computers, medical imaging devices, personal digital assistants, and efficient, and productive.
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Effectiveness
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Producing the desired result.
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Efficiency
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Producing goods and services using the least amount of resources
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Productivity
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The amount of output you generate given the amount of input.
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e-commerce
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The buying and selling of goods over the internet
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A database
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An electronic storage file where information is kept.
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Identity theft
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Obtaining of private information about a person, such as Social Security number and/or credit card number, and using that information for illegal purposes, such as buying things with it.
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Empowerment
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To meet the needs of customers, firms must give their frontline workers everything they need to quickly respond to the customer.
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Demography
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The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.
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Goods
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Tangible products such as computers, food, clothing.cars, and appliances.
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Sevices
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Intangible products such as education, health care, insurance, recreation, and travel and tourism.
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sole proprietorship
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A business that is owned and usually managed by one person.
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Partnership
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when two or more people legally agree to become co-owners of a business.
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General partnership
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A partnership in which all owners share in operating the business and in assuming liability for the business debts.
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Limited partnership
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A partnership with one or more general partner and one or more limited partner.
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General partner
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A partner with unlimited liability and is active in managing the firm. Must be at least one in each partnership.
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Limited partner
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A owner who invests money but does not have any management responsibility
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Limited Liability
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The limited partners are not responsible for debts of the business.
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Conventional (C) corporation
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A state-chartered legal entity with authority to act and have liability separate from its owners. (The stockholders are the owners)
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S corporation
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Avoids double taxation while still acting like a corporation
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Limited liability company
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a company similar to an S corporation without the special eligibility requirements
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A merger
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The result of two firms forming one company
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An Acquisition
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The purchase of one company by another.
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3 types of mergers
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1.) Vertical merger
2.) Horizontal merger 3.) conglomerate merger |
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Vertical merger
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The joining of two firms involved in different stages of related businesses.
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Horizontal merger
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Joins two firms in the same industry and allows them to diversify or expand their products.
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Conglomerate merger
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unites firms in completely unrelated industries.
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Leveraged buyout
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an attempt by employees, management, or a group of investors to purchase an organization.
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Franchise agreement
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an arangement whereby someone with a good idea for a business sells the rights to the business name and to sell a product or service.
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coopertives
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A business owned and controlled by the people who use it- producers, consumers, or workers with similar needs who pool their resources for mutual gain.
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Importing
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Buying products from another country.
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exporting
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selling products to another country.
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Free trade
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the movement of goods and services amoung nations without political or economic barriers.
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comparatice advantage theory
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Theory that states that a country should sell to other countries those products that produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently.
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absolute advantage
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the advantage that exists when a country has a monoply on producing a specific product or is able to produce it more efficiently than all other countries,
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balance of trade
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the total value of a nation's exports campared to its imports measured over a particular period.
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Trade deficit
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An unfavorable balance of trade; occurrs when the value of a country's imports exceeds that of its exports.
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balance of payments
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the difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
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Dumping
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selling products in a foreign country at lower prices than those charged in the producing country.
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Licensing
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A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty).
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contract manufacturing
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a foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark.
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Joint venture
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a partnership in which two or more companies (often from different countries) join to undertake a major project.
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Strategic alliance
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A long-term partnership between two or more companies established to help each company build competitive market advantages.
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foreign direct investment
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The buying of permenent property and businesses in foreign nations.
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foreign subsidiary
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A company owned ina foreign country by another company (called the parent company),
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multinational corporation
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An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.
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devaluation
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Lowering the value of a nation's currency relative to other currency.
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Countertrading
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A complex form of barterning in which several countries may be involved, each trading goods for goods or services for services.
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Trade protectionism
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The use of government regulations to limit the import of goods and services.
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Tariff
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A tax imposed on imports.
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Economics
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The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among carious competing groups and individuals.
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Macroeconomics
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The part of economics that looks at the operation of a nation's economy as a whole.
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Microeconomics
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The part of economics that looks at the behavior of people and organizations in particular markets.
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resource development
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The study of how to increase resources and to create the conditions that will make better use of those resources.
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invisible hand
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A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.
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Capitalism
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An economic system in which all or most of the factors of production and distribution are pricately owned and operated for profit.
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Four basic rights of capitalism
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1. The right to pricate property
2. The right to own a business and to keep all of the business profit 3. The right to freedom of competition 4. The right to freedom of choice |
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Free Markets
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one in which decisions about what to produce and in what quantities are made by the market- that is, by buyers and sellers negotiationg prices for goods and services.
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Supply
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The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
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Demand
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the quantity of products that people are willing to buy at different prices at a specific time
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Market price
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Determined by supply and demand
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Perfect competition
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Exists when there are many sellers in a market and no seller is large enough to dictate the price of a product.
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Monopolistic competition
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exists when a large number of sellers produce products that are very similar but are perceived by buyers as different.
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Oligopoly
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A form of competition in which juset a few sellers dominate the market.
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Monopoly
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a market in which there is only one seller for a product or service.
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Socialism
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An economic system vased on the premise that some, if not most, basic business should be owned by the government so that profits can be evenly distributed amoung the people.
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brain drain
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The loss of the best and the brightest people to other countries.
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communism
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an economic and political system in which the state makes almost all economic decisions and owns almost all the major factors of production
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Free-market economies
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Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows.
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Command economies
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Economic systems in which the government largely decides what goods and services will be produced, who will get them and how the economy will grow.
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mixed economies
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Economic systems in which some allocation of resources is made by the market and some by the government.
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Gross domestic product (GDP)
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The total value of final goods and sercices produced in a country in a given year.
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Unemployment rate
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The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior 4 weeks.
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Inflation
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A general rise in the prices of goods and services over time
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Disinflation
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a situation in which price increases are slowing (the inflation rate is declining)
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Deflation
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A situation in which prices are declining
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Frictional unemployment
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the people who have quit work because they didn't like the job, boss, or the working conditions and who haven't found a new job. or people who are entering the labor force for the first time.
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Structural unemployment
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unemployment due to restructuring of firms or by a mismatch between the skills of joc seekers and the requirements of available jobs
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cyclical unemploymenmt
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occurs because of a recession or a similar downturn in the business cycle. The most serious
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Seasonal unemployment
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occurs where demand for labor waries over the year, as with the harvesting of crops
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Consumer price index (CPI)
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Monthly statistics that measure the pace of inflation or deflation.
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Producer price index (PPI)
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An index that measures prices at the wholesale level.
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Business cycles
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The periodic rises and falls that occur in all economies over time.
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Recession
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Two or more consecutive quarters of decline in the GDP
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depression
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A secere recession
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Fiscal policy
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The federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending
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National debt
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The sum of government deficits over time
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Monetary policy
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The management of the money supply and interest rates
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