Unit 1 Test Flashcards
An organization that uses productive resources to produce a good and/or a service to satisfy consumer needs and wants in exchange for added value, usually in the form of money
Business
Something that is tangible (is physical in nature) and of value
A good
An action performed that is intangible and of value
A service
A person or group who uses purchased goods, products, or services
primarily for personal, social, family, household, business and/or similar
needs. A consumer is often, but not always, also the customer (those
who interact with and purchase goods and services from businesses)
Consumer
A necessity for life, something one must have to survive in the short and/or long term
Need
Something one would like to have as it has perceived value, but it is not needed for life to continue
Want
The net gain obtained by subtracting expenses from revenues
Profit
The total income (money) that the business receives through the sale of its products
Revenue
The toal cost a business incurs (pays) to operate as a business
Expenses
A business with the pruposes of making a profit for their owners. (most businesses)
For-profit business
Businesses formed for religious, charitable, educational, governmental or other purposes. Surplus revenue from business operations is not given to the owners of the business but are rather used for future operational expenses and/or expanding programs
Non-Profit business
A basic foundation of the study of economics; our wants are theoreticall unlimited, but our resources to meet those wants are limited, or scarce.
Scarcity
somethings that occurs anytie buyers and sellers willingly meet to negotiate and exchange things of value
Market (definition)
The wealth and resources of a country or region, especially in terms of the production and consumption of goods and services.
Economy
government determines who owns the means to produce goods and services
Socialized Economy
Whatever produces the most money in the market is the most valued
Market economy
the study of how we deal with scarcity in our worlds.
Economics
The quantity of goods and/or services that consumers are willing and able to BUY at various prices
Demand
The quantity of good and/or services that producers are willing and able to SELL at various prices
Supply
The point at which a supple curve and a demand curve meet is called the ________
Equilibrium
A business with one owner who gains all the benefits of the business and assumes all the risk
Sole Proprietorship
A business owned and operated by two or more people
Partnership
A business owned by a legal entity that is seperate from it’s owners
Corporation
There is no seperation between the owner’s personal assets and the business’s assets
Unlimited liability
Shareholders personal assets are seperate from the assets of the corporation (don’t exist in canada)
Limited liability
A corporation whose shares are bought and sold on a public stock exchange (stock market).
Public Corp.
A corporation which does not sell shares on a public stock exchange (often invite private investors)
Private Corp.
A corporation created and owned by our Federal government
Crown Corp.
A type of license that allows a franchisee to operate a business using the franchisor’s proprietary knowledege, process, and trademarks. In exchange for this right, the franchisee pays an initial start-up fee ang ongoin licensing fees to the franchisor.
Franchise
The willing exchange of good and/or services for perceived value.
trade
___________ ____ is the next most valuable option when you have given up when you make an exchange
Opportunity Cost
Internation trade left to its natural course without tariffs, quotas, or other restrictions
Free trade
A ____ _____ _________ is a pact made between two or more countries to reduce or eliminate barriers to trade an investment
Free Trade Agreement
____ _____ is a trading partnership, based on dialogue, transparency, and respect, that seeks greater equity in international trade.
Fair Trade
The process of interaction and integration among people, companies, and governments worldwide. It encompasses economic, social, and cultural aspects, resulting in increased international connectivity.
Globalization
______________ refers to the long-term viabilty of a community, social institutions, or societal practices.
Sustainability
(___) per capita measures the average economic output per person, providing insight into the standard of livinh and economic health of a country
GDP per capita
