Domain 6 021 Flashcards
Voluntary exchange
the process of willingly trading one valuable commodity (good, service or resource) for another. Voluntary exchanges are the foundation of market transactions and what makes competitive markets efficient
Equilibrium price
is the price at which the supply exactly matches the demand
U.S. free enterprise system
Markets that respond to consumer demand
In the U.S. free enterprise system one of the primary roles of the government is to ensure the safety of products through regulation
Enlightenment
an 18th-century intellectual movement that emphasized reason, critical thinking, skepticism, individualism, religious tolerance, democracy, capitalism, and other themes.
Industrial Revolution
began in Great Britain in the mid-1700s
peaked in the United States during the early 1800s
The American Industrial Revolution brought advances in textile manufacturing, steam technology, and mechanics
World Trade Organization (WTO)
founded in 1995 during the Uruguay Round of negotiations on the General Agreement on Tariffs and Trade (GATT).
important development for the promotion of free trade in the 1990s was the creation of the World Trade Organization
Sole proprietorship
a form of business ownership where there is one owner
The Federal Reserve
controls the growth rate of the money supply through monetary policy.
The Federal Reserve affects the money supply through monetary policy, like adjusting interest rates and buying or selling government securities.
Corporation
Individuals or companies own a corporation. For instance, Microsoft Company is owned by shareholders who have limited liabilities and control of the business.
General partnership
Two or more partners create a general partnership with unlimited liabilities. The partners agree on how to run business activities. Generally, a partner can enter into a contract on behalf of other partners.
