Deca Chapter 3

economy

the organized way a nation provides for the needs and wants of it’s people.

resources

All of the things used in producing goods and services

factors of production

they are land, labor, capitol and entrepreneurship

infrastructure

the physical development of a country, this includes roads, ports, facilities, utilities, and telecommunications.

entrepreneurship

the skills of people who are willing to invest their money and time to run a business

scarcity

The difference between wants and needs and available resources.

traditional economy

Habits, traditions and rituals make the economy the way it is.

market economy

There is no government involvement in economic decisions, the consumers what is produced, how it is made and who will buy it.

command economy

The government makes all economic decisions about how, what and for whom goods and services are produced.

productivity

output per worker hour that is measured

GDP (gross domestic product)

the output of goods/services that is produced by labor within the country

GNP (gross national product)

The total dollar value of goods/services produced by a country

inflation

rising prices

Consumer price index

The change in price over a period of time of 400 products used by the average american

Producer price index

measures wholesale price levels in the economy

business cycle

The natural rise and fall of the economy over time, moving through periods of growth and recession.

expansion

A time when the economy is doing well

recession

A period of economic slowdown that lasts at least 6 months

depression

A period of prolonged recession

recovery

The period when the economy is getting better after a recession or depression.