Chapter 5 Flashcards
refers to a means through which sellers and buyers exchange goods
Market Signals
has a life expectancy of less than three years
Nondurable goods
has a life expectancy of at least three years
Durable goods
production and quota limits cause illegal systems for exchanging goods
Black markets
that part of an economy that is controlled by private individuals, business, and organization
Private sectors
which is controlled by national, state and local governments
Public sectors
the urge to work at bettering one’s economic situation
Profit motive
Deprication
the diminishing of the value of goods that is caused by wear and time
the excess of the total revenue paid by buyers for goods over the seller’s total expense of producing those goods
Profit
the value of the best alternative that is forgone when a different alternative is taken
Opportunity cost
Whis a business making a large profit rare?
- a business cannot raise its prices above what its competitors are charging
- there are expenses beyond what we normally think of as the four factors of production
What is one feature of the American Market?
Shopping malls
