Critical thinking notes
1. Free Enterprise-what to produce, how to produce it, what to sell it at
2. Profit-what remains after all of the expenses have been deducted from sales revenue.
3. Macroeconomics-national and global economy (think macro=big=global)
4. Microeconomics-decisions made by individuals and businesses (micro=small=individual)
5. GDP-(gross domestic product)-total value of all goods and services produced by people within the boundaries of a country during a one year period.
6. CPI(consumer price inex)-measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area.
7. PPI(producer price index)-index that measures that producers receive for their finished goods.
8. Fiscal policy-influence on the amount of savings ad expenditures.
9. Federal deficit-government spends more in a year than it receives.
10. Perfect/pure competition-many buyers and sellers of a product, but no buyer is powerful enough to affect the price of the product.
11. Market price-price at which the quantity demanded is equal to the quantity supplied.
12. Monopolistic competition-many buyers and sellers who differentiate their products from the products of competitors.
13. Oligopoly-few sellers (each seller has control over price)
14. Monopoly-market with only one seller
15. Whistle blowing-informing the press or government officials about unethical practices within one’s organization.
16. Guidelines for making ethical decisions
-listen and learn.
-identify the ethical issues.
-identify the best option from your point of view.
-explain your decision and resolve any differences that arise.
17. caveat emptor- “let the buyer beware” 18. economic model- society will benefit most when business is left alone to produce and market profitable products that society needs. 19. socioeconomic model-business should emphasize not only profits but also the impact of its decisions on society.
20. trade deficit- a negative
2. Profit-what remains after all of the expenses have been deducted from sales revenue.
3. Macroeconomics-national and global economy (think macro=big=global)
4. Microeconomics-decisions made by individuals and businesses (micro=small=individual)
5. GDP-(gross domestic product)-total value of all goods and services produced by people within the boundaries of a country during a one year period.
6. CPI(consumer price inex)-measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area.
7. PPI(producer price index)-index that measures that producers receive for their finished goods.
8. Fiscal policy-influence on the amount of savings ad expenditures.
9. Federal deficit-government spends more in a year than it receives.
10. Perfect/pure competition-many buyers and sellers of a product, but no buyer is powerful enough to affect the price of the product.
11. Market price-price at which the quantity demanded is equal to the quantity supplied.
12. Monopolistic competition-many buyers and sellers who differentiate their products from the products of competitors.
13. Oligopoly-few sellers (each seller has control over price)
14. Monopoly-market with only one seller
15. Whistle blowing-informing the press or government officials about unethical practices within one’s organization.
16. Guidelines for making ethical decisions
-listen and learn.
-identify the ethical issues.
-identify the best option from your point of view.
-explain your decision and resolve any differences that arise.
17. caveat emptor- “let the buyer beware” 18. economic model- society will benefit most when business is left alone to produce and market profitable products that society needs. 19. socioeconomic model-business should emphasize not only profits but also the impact of its decisions on society.
20. trade deficit- a negative