Business Flashcards
Individuals or organizations that sell goods and services
Producers
Products that you can see and touch
Goods
Resources that include labor and creative ideas from entrepreneurs
Human
Resources used in the products of goods and services, examples include buildings, equipment, and land
Capital
Value of the next best alternative that was not chosen
Opportunity cost
Mismatch of unlimited needs and wants and limited resources
Basic economic problem
The price where supply and and demand are equal
Market price
Individuals and organizations that buy good and services
Consumers
Economy where the government make the economic decisions and owns all the resources
Command
Things that add comfort to your life
Wants
Resources that include raw material from nature
Natural
Things available to be used to produce goods and services. (Also known as factors of production)
Economic resources
Quantity of a good or service that businesses are willing to provide
Supply
A person with a creative idea to start a new business
Entrepreneur
Things necessary to survive
Needs
Activities provided that are consumed when purchased
Services
Businesses offering very similar products
Competition
Economy where families produce most of what they need and trade for the rest
Traditional
Not enough resources to satisfy every need
Scarcity
Economy where businesses and individuals make their own decisions and own their own resources.
Market economy
Giving up something to get something else
Trade off
Another name for U.S. System
Capitalism
Economy that combines elements of a command economy and market economy
Mixed economy
The quantity of a good or service that consumers are willing and able to buy
Demand
Define: Basic Economic Problem
Mismatch of unlimited want/needs and limited resources
Define: services
Activities provided that are consumed when they are purchased
Define: market price
The point where supply and demand are equal
Define: Economic system
The method a county uses to answer the three economic questions
Each country must answer three economic questions. What are they?
- What goods/services will be produced?
- How will the goods and services be produced?
- What needs and wants will be satisfied with the goods and services produced?
There are three basic types of economic systems. What are they and how do they work?
Command economy: all resources are owned and controlled by the government, government decides how goods will produced and distributed
Market: resources are owned by the people, businesses make their own economic decisions
Traditional economy: individuals/families produce what they need and sell and trade the rest
Define: needs
Things that are necessary to survive such as food, water, shelter
Define: goods
Products you can see and touch
There are categories of economic resources, what are they?
Natural
Human
Capital
Define: human resources
People who produce goods and services
- labor resources
- entrepreneurial resources
Define: Economic decision making
Process of choosing which needs and wants will be satisfied
Define: Capital resources
Products used in the production of goods and services. Example: you might use equipment, land, vehicles, etc in the production of a good/service
Define: mixed economy
When a county’s economy can’t fit neatly into one economy type. Many countries are a combination of a market economy and command economy
Define: Entrepreneur
A person who comes up with a creative business idea
Define: Competitors
Businesses offering very similar products
Wants:
Something you can survive without
Define: opportunity cost
The value of the next best alternative you were not able to choose. The benefit you get from your choice should be greater than the opportunity cost.
Example: you are at the store and trying figure out what to spend $5 on. You are trying to decide whether to get 2 pops and two candies or wether you should get four pops. If you buy 2 pops/two candies your opportunity cost would be not getting 4 pops. If you got only pops, your opportunity cost would be not getting 2 pops and 2 candies
Define: scarcity
Not enough resources to satisfy every need, affects everyone to different degrees
Define :economic resources
Things available to be used to produce goods and services, also known as factor of production
Define: capitalism
Another name for the U.S. Economic system
Individuals are free to: Own private property Have freedom of choice Make profit Competition
Define: trade off
Giving up something to get something else
Define-natural resources
Natural resources supplied by nature such as water, oil, minerals, trees, animals
Define-factors of production
Things available to be used to produce goods and services, also known as economic resources
Define: consumer
Buys goods and services. Could be individuals, businesses, or the government
Define: demand
The amount of goods and services that consumers are willing to buy
Define: Producer
Sells goods and services. Can be individuals, government, or businesses
