CHAPTER 3 – Study Guide
Economic Challenges Facing Contemporary Business
Business Vocabulary
balanced budget
microeconomics
budget
mixed market economy
budget deficit
monetary policy
budget surplus
monopolistic competition
communism
monopoly
consumer price index (CPI)
national debt
core inflation rate
oligopoly
cyclical unemployment
planned economy
deflation
privatization
demand
productivity
demand curve
pure competition
economics
recession
equilibrium price
regulated monopoly
expansionary policy
restrictive monetary policy
fiscal policy
seasonal unemployment
frictional unemployment
socialism
gross domestic product (GDP)
structural unemployment
hyperinflation
supply
inflation
supply curve
macroeconomics
unemployment rate
Application of Vocabulary
Select the term from the list above that best completes the statements. Write that term in the space provided.
1. In the United States, changes in price levels are tracked by the _____________________, which measures the monthly average changes in prices of goods and services.
2. The term used to describe the study of the overall operations of an economy and its various components is known as______________________________.
3. ______________________________ refers to the study of the economic activities of a firm or an individual.
4. A ______________________________ occurs when government grants exclusive rights in a single market to a single firm, such as a utility company.
5. ______________________________ refers to people who are temporarily out of work but who are looking for a job.
6. The science of allocating scarce resources is known as ___________________________.
7. The ____________________________ depicts the difference in the amount of a good a seller will produce at various prices.
8. The _______________________________ is the price at which the demand curve and the supply curve intersect.
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