Chapter 1 Vocabulary Flashcards
1
Q
barriers to entry
A
Factors, such as technological or legal conditions, that prevent new firms from competing equally with an existing firm.
2
Q
business
A
An organization that strives for a profit by providing goods and services desired by its customers.
3
Q
business cycles
A
Upward and downward changes in the level of economic activity.
4
Q
capital
A
The inputs, such as tools, machinery, equipment, and buildings, used to produce goods and services
and get them to the customer.
5
Q
capitalism
A
Private ownership of the
factors of production (resources); also known as the private enterprise system.
