Intro to Business Chapter 2 Review

Gross Domestic Product

• is the market value of all final products produced in a country during a specific time period.

• includes everything people buy for personal use, such as food, clothing, cars, medical care and recreation.

• is the GDP of a nation divided by its population.

• is the general rise in prices throughout an economy.

A general decline in prices throughout an economy

• Inflation

• Hyperinflation

• Deflation

• Interest Rate

A high GDP means the economy is

• Strong

• Weak

When the Fed decides to raise interest rates, it shows the economy is

• Strong

• Weak

Productivity is

• the financial well-being of the average person in a country.

• a measure of a worker's production in a specific amount of time.

• focusing on the production of a specific good so more product can be produced.

• 4%

Monopoly is

• a market structure with a small number of businesses selling the same or similar products

• characterized by a large number of businesses selling the same product for the same price

• a large number of businesses selling similar, but not the same, products and at different prices

• a market structure with one business that has complete control of a market's entire supply of goods or services

Fiscal policy is the tax and spending decisions made by the president and

• the Federal Reserve

• the IRS

• the Supreme Court

• Congress

When two or more businesses in an industry agree to sell the same good or service at a set price.

• Collusion

• Price fixing

• Antitrust laws

• FTC

Established in 1890, this act was the first antitrust law in the US. It removed limits on competitive trade and kept companies from becoming a monopoly.

• Roe v Wade

• Clayton Antitrust Act

• Federal Trade Commision Act

• Sherman Antitrust Act

Competitive advantage based on factors other than price.

• Price Competition

• Perfect Competition

• Nonprice Competition

• Monopolistic Competition