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Business Unit 3+4 Unit Test

Question Answer
Spatial Perception is the ability to be aware of your relationships with the environment around you (exteroceptive processes) and with yourself (interoceptive processes).
Economic System are the means by which countries and governments distribute resources and trade goods and services
Market Economy is an economic system in which economic decisions and the pricing of goods and services are guided solely by the combined interactions of a country's individual citizens and businesses.
Centrally Planned Economy is an economic system in which the state or government makes economic decisions rather than the interaction between consumers and businesses.
Gross Domestic Product (GDP) the total value of goods produced and services provided in a country during one year.
Absolute Advantage the ability of an individual or group to carry out a particular economic activity more efficiently than another individual or group.
Opportunity Cost the loss of potential gain from other alternatives when one alternative is chosen.
Comparative Advantage the ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity
Recession Two consecutive quarters of negative GDP
Trough is when production and employment reach their lowest levels
Expansion is when employment, wages, production, and products all expand.
Peak top of the business cycle
Leading indicator predict where the economy is headed; help guide investors, businesses, and government to act according to what happened.
Lagging indicator do not adjust until after the economy has experienced the change; unemployment rate.
Coincident indicator move in conjunction with the business cycle; international trade
Mixed economy is a system that combines characteristics of market, command and traditional economies.