MODULE SEVEN Flashcards
Market Economy
An economic system in which
individuals are free to compete, to earn a living, to earn a profit, and to own property.
Free Market
An economic system in which buyers and sellers are free to exchange goods and services as they choose
Free Enterprise
Principle that business owners in a
free market are allowed to run their businesses in any way they see fit
Corporation
A business organization chartered by
a state government
Stock
A share of ownership in a corporation.
Dividends
Profits paid to corporate stockholders.
Non-profit organizations
Business organizations
that provide goods and services without seeking to earn a profit
Natural Recourses
Any natural materials that are
used by humans
Capital
Money invested in business
Labor
Human effort used to make goods and services
If Supply goes____demand goes___
If Demand goes____supply goes___
Down,Up
Down,Up
Factors that weaken the economy
Unemployment, significant inflation, political instability
4 factors of production
land, labor, entrepreneurship, capital
What Are government regulations?
Rules that control how the government operates.
3 Government Regulations
Tariff, Licensing, Consumer Protection Laws
How can you use the 4 factors of production for a clothing store?
Land- Where the store is
Labor-The clothes being made by people
Capital- The money to buy the clothing and store necessities
Entrepreneurship- Decide all the decisions for the clothing store like target audience, quality, and designs and trends
Capitalism
An economic system based on private
ownership of the means of production
