AP Business: Understanding Economic Systems and Business flashcards

Question 1

Which term names the legal, technological or other conditions that stop new firms from competing on equal terms with an established firm?

Accepted Answer

Barriers to entry

Question 2

What is the term for the upward and downward swings in the level of economic activity?

Accepted Answer

Business cycles

Question 3

Which economic system rests on marketplace competition and private ownership of the factors of production?

Accepted Answer

Capitalism

Question 4

What is the name for the flow of inputs and outputs among households, businesses and governments, used to show how the sectors of an economy interact?

Accepted Answer

Circular flow

Question 5

What do we call inflation that arises when higher production costs push up the prices of final goods and services?

Accepted Answer

Cost-push inflation

Question 6

What do we call unemployment that arises when a downturn in the business cycle lowers demand for labor across the whole economy?

Accepted Answer

Cyclical unemployment

Question 7

What is the term for the quantity of a good or service that people are willing to buy at various prices?

Accepted Answer

Demand

Question 8

What is a graph of the quantity of a good or service people are willing to buy at various prices called?

Accepted Answer

Demand curve

Question 9

What do we call inflation that occurs when the demand for goods and services exceeds the supply?

Accepted Answer

Demand-pull inflation

Question 10

What is the term for an increase in a nation's output of goods and services?

Accepted Answer

Economic growth

Question 11

Which field studies how a society uses scarce resources to produce and distribute goods and services?

Accepted Answer

Economics

Question 12

What is the name for the point at which quantity demanded equals quantity supplied?

Accepted Answer

Equilibrium

Question 13

What is the term for the resources used to create goods and services?

Accepted Answer

Factors of production

Question 14

What is it called when the federal government spends more on programs than it collects in taxes?

Accepted Answer

Federal budget deficit

Question 15

What is the term for a government's use of taxation and spending to influence the economy?

Accepted Answer

Fiscal policy

Question 16

What measure gives the total market value of all final goods and services produced within a nation's borders in a year?

Accepted Answer

Gross domestic product (GDP)

Question 17

What is the term for a situation in which the average of all prices of goods and services is rising?

Accepted Answer

Inflation

Question 18

Which branch of economics looks at the economy as a whole, using aggregate data for large groups of people, companies or products?

Accepted Answer

Macroeconomics

Question 19

Which branch of economics focuses on individual parts of the economy, such as households or firms?

Accepted Answer

Microeconomics

Question 20

What is the term for a government's programs for controlling the amount of money in circulation and interest rates?

Accepted Answer

Monetary policy

Question 21

Which market structure has many firms selling close substitutes, with entry that is relatively easy?

Accepted Answer

Monopolistic competition

Question 22

What is the term for the accumulated total of all of the federal government's annual budget deficits?

Accepted Answer

National debt

Question 23

In which market structure do a few firms produce most or all of the output, with large capital requirements or other factors limiting the number of firms?

Accepted Answer

Oligopoly

Question 24

Which market structure has a large number of small firms selling similar products, well-informed buyers and sellers, and easy opening and closing of businesses?

Accepted Answer

Perfect (pure) competition

Question 25

What is the term for the money left over after all costs are paid?

Accepted Answer

Profit

Question 26

In which market structure does a single firm account for all industry sales of a good or service, protected by barriers to entry?

Accepted Answer

Pure monopoly

Question 27

What do we call unemployment caused by a mismatch between available jobs and the skills of available workers in an industry or region?

Accepted Answer

Structural unemployment

Question 28

What is the term for the quantity of a good or service that businesses will make available at various prices?

Accepted Answer

Supply

Question 29

What is a graph of the quantity of a good or service businesses will make available at various prices called?

Accepted Answer

Supply curve

Question 30

What is the percentage of the total labor force that is not working but is actively looking for work called?

Accepted Answer

Unemployment rate

AP Business: Understanding Economic Systems and Business flashcards

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