Chapter 1 Definitions Flashcards
Monopoly
A market or industry with only one seller, and there are barriers to keep other firms from entering the industry.
Natural Monopoly
An industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the public interest.
Standard of living
A loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services.
Barter
A system of exchange in which goods or services are traded directly for other goods or services without using money.
Domestic system
A method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur.
Factory system
A system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place.
Specialization
The seperation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals.
E-business
The organized effort of individuals to produce and sell through the internet, for a profit, the products and services that satisfy society’s needs.
Service Economy
An economy in which more effort is devoted to the production of services than to the production of goods.
Sustainability
Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
