Terms Flashcards
something tangible/physical and of value
A good
An organization that uses a resorce to produce good/services to satisfy the customers needs/wants in exchange for profit (money)
Business
An action performed and has value
A service
A necessity of life
A need
Something you would like to have (has value) but not needed to live.
A want
The net gain obtained by subtraction expenses from revenue
Profit
Total income of a business
Revenue
Total cost a business pays to operate as a business
Expenses
has the purpose of making a profit for their owners
For-profit Business
money gained goes back into the business not the owner
Non-Profit Business
the basic foundation of economics: our wants are unlimited but the resources we need to meet our wants are limited
Scarcity
Something that occurs anytime buyers and sellers willingly negotiate and exchange things of value
Market
the wealth and resources of a country or region
Economy
the government determaines who owns the means to produce goods/services - govr’t controls all
Socialized (command) Economy
the owner is determained through the interaction of free market - barley anything is government run
Market (pure Capitalist) Economy