Intro to Business - Chapter 1 Key Terms

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Barriers to Entry

Back

Factors that prevent new firms from competing equally with existing firms.

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Business

Back

An organization that strives for profit by providing goods and services desired by its customers.

Front

Business Cycles

Back

The upward and downward changes in the level of economic activity.

Front

Capital

Back

Inputs such as tools, machinery, equipment, and buildings used to produce goods and services.

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Capitalism

Back

An economic system based on competition in the marketplace and private ownership of the factors of production.

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Circular Flow

Back

The movement of inputs and outputs among households, businesses, and governments.

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Communism

Back

An economic system characterized by government ownership of virtually all resources.

Front

Consumer Price Index (CPI)

Back

An index of the prices of a 'market basket' of goods and services purchased by typical urban consumers.

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Contractionary Policy

Back

The use of monetary policy to tighten the money supply.

Front

Cost-Push Inflation

Back

Inflation caused by rising production costs.