Term
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economic terms
defining terms
Term | Definition |
---|---|
Unemployment rate | the number of people without jobs who are looking for work divided by the number in the labor force. |
business cycle | recurring slowdown and growth of an economy. |
expansion | the phase of economic activity during which the economy's total output increases.(consumer spending picks up, industry begin to hire workers and increase production to meet demand.) |
recession | a decline in total production lasting at least two consecutive quarters, or at least six months. |
depression | major slowdown of economic activity.(millions out of work, business fail, and the economy operates at far below capacity) |
recovery | the increase in the overall economic activity |
prosperity | a successful, flourishing, or thriving condition, esp. in financial respects; good fortune. |
laissez-faire | economic system in which the government minimizes its interference with the economy. |
capital goods | previously manufactured goods (or human creations) used to make other goods and services. |
capital | money needed to start and operate a business. |
capitalism | an economic system characterized by private ownership of businesses and marketplace competition. |
communism | also called a command economy) a type of government that relies on collectivization of labor and good to equal out the classes. |
socialism | a system in which ownership of assets, and the control over the means of production, are taken from the people and given to the government. |
economics in transition | (transitional economy) an economic system in the process of shifting from central planning to competitive markets. |