Marketing essentials chapter 3

recession
a period of economic slow down that lasts for 2 periods, or 6 months
Traditional economy
a system in which traditions dictate production and distribution rules
resources
all things used in producing goods and services
business cycle
recurring changes in economic activity, including growth and reduction
economy
organized way a nation provides for the needs and wants of it’s people
recovery
period of renewed economic growth following a recession or depression
command economy
a system in which the government makes production and distribution rules
market economy
a system in which groups and individuals make it’s economic rules
infrastructure
the physical development of a country, including it’s roads and utilities
Gross Domestic Product (GNP)
the output of goods and services produced by labor and property located within a nation
Gross national Product (GNP)
The total dollar values of goods and services produced by a nation
inflation
a period of rising prices
Consumer price index (CPI)
measurement of the change in price over a period of time of approximately 400 retail goods and services used by the average urban household
producer price index (PPI)
Measurement of wholesale price levels in the economy
expansion
A time when the economy is flourishing; also called prosperity
depression
a period of prolonged recession
Factors of production
economic term for the four categories of resources: land, labor, capital and entrepreneurship
entrepreneurship
The process of starting and owning your own buisness
scarcity
the difference between what consumers what and need and what the available resources are