Social GA 2.1 Retake Flashcards
A business organization with only one owner, as the term sole implies. Owner and business are regarded as the same entity
Sole Proprietorship
Business organization with two or more owners who are referred to as partners
Partnership
Is a separate legal entity with rights and obligations. Business entity that is owned by its shareholder(s)
Corporation
Corporations authorized to issue shares to individuals called shareholders
Stock Corporations
Represent all other corporations that do not issue stocks
Nonstock Corporations
A corporation made up of several different, independent businesses
Conglomerate
Form of business organization that is jointly owned and managed by its members, established to meet common needs or objectives
Cooperatives
Represents an idea or theory which reflects real-world situations and is founded on sound economic analysis
Economic Models
Is an underlying premise taken into consideration for the claims of the model to be valid.
Assumption
Economic practitioners utilize these to develop ideas and economic analyses and to create models. Are ideas or bodies of knowledge applied to create another concept
Economic Tools
They are diagrams of how one variable relates to another
Graph
Is a simplified representation of data
Charts
Can be defined as a mathematical expression showing the association of variables, or simply how variables “equate” to one another
Equations
Is one in which the value does not rely on another variable
Independent Variables
The statement, “variable a is a function of variable b” is equivalent to the statement “variable a is influenced by the changes in variable b”
Dependent Variables
As the satisfaction or the value derived from the consumption of a good
Utility
The extra satisfaction that an individual derives from the consumption of an additional unit of good within 2 given period, keeping other things constant
Marginal Utility
Measurement of satisfaction
Utils
Is represented by the point of tangency of the budget line with the highest indifference curve
Equilibrium Position
Means “touching: in algebra rather than passing through
Tangent
Refers to the willingness of consumers to buy a good or service given different price levels
Demand
A process firms undergo to ensure the best output and price levels are achieved in order to maximize returns
Profit Maximization
Conventionally used to refer to producers, manufactures or suppliers
Firm
Refers to the amount of goods and services made available in the market
Supply
As price of a good rises, quantity supplied also goes up
The Law of Supply
What are the Determinants of Supply
Technology, Cost of Inputs, Price of Other Goods, Producer Expectation
Refers to a financial assistance extended by the government to specific sectors or industries
Subsidy
Are fees imposed by the government on individuals and business
Taxes
Limits on the volume of trade imposed by the government to certain industries or goods
Quotas
Is a limit on the volume of imported goods
Import Quota
Is a restriction on the amount of exports
Export Quota
Form of tax levied on imported goods
Tariff
