Business Marketing Chapter 2 Vocab

Gross domestic product (GDP)
the total value of all final goods and services produced in a country during one year.
GDP per capita
output per person calculated by dividing GDP by the total population
unemployment rate
The portion of people in the labor force who are not working.
Productivity
the production output in relation to a unit of input, such as a worker.
Personal income
Salaries and wages as well as investment income and government payments to individuals.
retail sales
The sales of durable and nondurable goods bought by consumers.
Business cycle
The movement of the economy from one condition to another and back again.
Prosperity
A period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of GDP growth increases.
Recession
A period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year.
Depression
A phase marked by a prolonged period of high unemployment, weak consumer sales, and business failures.
Recovery
A phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again.
Inflation
An increase in the general level of prices.
Price index
A number that compares prices in one year with prices in some earlier base year.
Deflation
A decrease in the general level of prices
Capital projects
Spending by businesses for items such as land, buildings, equipment, and new products.
Stock
represents ownership in a corporation
equity
Term that means “ownership”
Bond
represents debt for an organization
budget surplus
When the government spends less than it takes in
budget deficit
When a government spends more than it takes in
national debt
The total amount owed by the federal government