Ch 2 Economic Vocabulary

capitalism – an economic system in which private citizens own and use the factors of production in order to seek a profit
Unit account – In which method of accounting is a participant's account balance reflected as units instead of shares?
Labor – human effort directed towards producing goods and services
Unemployment Rate – Measures the number of people who are able to work, but do not have a job during a period of time.
utility – term for the usefulness of a good
indirect production – consumer and producer are not the same
Refer to Figure 11-7. When the output level is 100 units average fixed cost is
Supply – the amount offered for sale at a certain price
Multi National Corporations – Businesses that operate (have production facilities) in more then one country. Eg Nike
Economic integration – Describes the process under which macroeconomic policies of different countries become more coordinated
Refer tо Figure 11-7. When the оutput level is 100 units аverаge fixed cоst is
principle #8 – markets usually lead to efficiency.
Equilibrium – the price at which supply and demand are equal

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