Chapter 1 Flashcards
Number of products-goods or services- that businesses are willing to sell at diff prices at a specific time.
Supply
Groups that have a stake in the success and outcome of a business.
Stakeholders
When the govt owns and operates basic industries but individuals own most businesses.
Socialism
A decline in production, employment, and income.
Recession
When there are many small businesses selling one standardized product.
Pure competition
Difference between what it costs to make and sell a product and what a customer pays for it.
Profit
A good or service with tangible and intangible characteristics that provide satisfaction and benefits.
Product
When there are very few businesses selling a product.
Oligopoly
Organizations that may provide goods and services but don’t have the fundamental purpose of earning profits.
Non profit organization
Land, forests, minerals, water, and other things that are not made by people.
Natural resources
When there is only one business providing a product in a given market.
Monopoly
When there are fewer businesses than in a pure competition environment and the differences among the goods they sell are small.
Monopolistic competition
Economies made up of elements from more than one economic system.
Mixed economies
A condition characterized by a continuing rise in prices.
Inflation
The physical and mental abilities that people use to produce goods and services also called labor.
Human resources
Sum of all goods and services produced in a country during a year.
Gross domestic product
Pure capitalism, in which all economic decisions are made without govt intervention.
Free market system
The funds used to aquire the natural and human resources needed to provide products also called capital.
Financial resources
Amount of products businesses are willing to provide equals amount of products consumers are willing to buy at a specific point in time.
Equilibrium price
An individual who risks his or her wealth, time, and effort to develop for profit an innovative product or way of doing something.
Entrepreneur
When a nation spends more than it takes in from taxes.
Budget deficit
Individuals or organizations that try to earn a profit by providing products that satisfy people’s needs.
Businesses
Individuals own and operate the majority of businesses that provide goods and services.
Capitalism or free enterprise
A society where the people without regard to class own all nations resources. Karl Marx.
Communism
Rivalry among businesses for consumer dollars.
Competition
Number of goods and services that consumers are willing to buy at diff prices at a specific time.
Demand
Condition of the economy in which unemployment is high, consumer spending is low and business output is sharply reduced.
Depression
A slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers.
Economic contraction
When an economy is growing and people are spending more money and their purchases stimulate the production of goods and services which stimulates employment.
Economic expansion
Description of how a particular society distributes its resources to produce goods and services.
Economic system
The study of how resources are distributed for the production of goods and services within a social system.
Economics
When a percentage of the population wants to work but can’t find a job.
Unemployment
