INTR 250C Chapter 1 Flashcards
business
an organization whos’ goal is to earn a profit by providing goods and services that satisfy customer needs
product
a good, service or idea that provides satisfaction and/or benefits to the customer
non-profit
an organization that earns money for fundraising for their product rather than for a profit
profit
the difference between the cost to provide a product and what the customer pays for the product
stakeholder
a person who invests money into a business or non-profit that benefits from it’s success
economics
the study of how resources are distributed for the production of goods
factors of production
these are natural resources, human resources/labor, financial resources, and enterprise
communisum
“A society in which people own all the nations resources” -Karl Marx
socialism
a type of economy in where the state provides some social services, and individuals also own some businesses
el capitalismo/free enterprise
a type of economy where all businesses are owned by individuals and the prices, are controlled by supply and demand
mixed economy
an economy that has multiple elements of different economy types
individuals rights in free enterprise
these are the right to buy and sell property, to keep their profits, to run their business, and to choose their own careers
supply
the number of product willing to be sold at a certain price
demand
the number of product willing to be bought at a certain price
equilibrium price
when supply is equal to demand
competition
when the same standard product is offered by multiple businesses to lower the prices
pure competition
when many small businesses offer the same product at the most competitive rate
monopolistic competition
whenfewer bigger businesses sell one product for a less competitive rate
monopoly
when only one business provides a service in a given market
inflation
the condition of an economy characterized by rising prices
deflation
the condition of an economy characterized by high UNemployment and low prices
economic expansion
when people stimulate an economy by spending money, which intern stimulates employment
economic contraction
when spending is down and everything else is impacted by that
recession
decline in production associated with economic contraction
unemployment
when a percent of the population who is searching for work is unable to find work
economic depression
when employment and spending are both low in an economy
Gross Domestic Product (GDP)
sum of all goods and service produced in a year within a country
budget deficit
when a government spends more than it taxes
trade balance
the difference between the exports and the imports
trade deficit
when imports are greater than exports
consumer price index
measures changes in price of goods and services purchased for consumption by a household.
per capita income
amount of money earned per person within a country
inflation (measurement)
monitors the price increases in consumer goods and services a specified period of time
worker productivity
amount of goods and services produced each hour worked
standard of living
level of wealth and material comfort available to a person
open economy
a economy in which economic activity occurs within and outside of a country
agricultural economy
an economy based on the production and exchange of crops and live stock
manufacturing economy
an economy based on the production of goods made from other things (often in a factory)
service economy
an economy based on other people doing a job or work for someone else (e.g. waiter, Uber driver, Door Dash)
technology (Business)
the methods and process in creating APPS to solve problems, perform tasks, and make decisions
