Vocab Quiz 2 Flashcards
Brick and mortar
A business that operates out of a physical facility (instead of online)
Builders:
A type of producer that constructs roads, bridges, buildings, houses, etc.
Consumers
People who use goods and services to satisfy their wants
E-tailers
Retailers who operate solely online
Manufacturer
A type of producer that changes the shapes or forms of materials so that they will be useful to consumers
Producers
The people who make or provide goods and services
Raw-goods producer
A type of producer that provides goods in their natural state
Retailer
A business that buys consumer goods or services and sells them to the ultimate consumer
Service business
A type of business that performs intangible activities that satisfy the needs and wants of consumers or industrial users
Social responsibility
The duty of business to contribute to the well-being of society
Trade industries
Businesses that buy and sell goods to others; retailers and wholesalers
Wholesalers
Intermediaries who help move goods between producers and retailers by buying goods from producers and selling them to retailers
Capital goods
Manufactured or constructed items that are used in the production of goods and services
Consumer goods and services
Products produced for personal consumption
Consumption
The process or activity of using goods and services; The economic process or activity of using goods and services
Demand
The quantity of a good or service that buyers are ready to buy at a given price at a particular time
Distribution
The economic process or activity by which income is divided among resource owners and producers
Economic goods
Physical objects that are useful, scarce, and transferable and which satisfy economic wants
Economic resources
The human and natural resources and capital goods used to produce goods and services
Economic services
Productive acts that are useful, scarce, and transferable and which satisfy economic wants
Economic want
A desire for something that can only be satisfied by spending money
Economics
The study of how to meet unlimited, competing wants with limited resources
Elastic demand
A form of demand for products in which changes in price correspond to changes in demand
Elasticity
An indication of how changes in price will affect changes in the amounts demanded and supplied
Equilibrium
The point at which the quantity supplied is equal to the quantity demanded
Excess demand
The situation that exists when demand is greater than supply
Excess supply
The situation that exists when supply is greater than demandq
Exchange
The economic process of trading one good/service for another
Factors of production
Productive resources; human and natural resources and capital goods
Human resources
People who work to produce goods and services
Industrial goods and services
Products purchased by producers for resale, to make other goods and services, and/or to use in business operations
Inelastic demand
A form of demand in which changes in price do not affect demand
Law of demand
Economic principle which states that the quantity of a good or service that people will buy varies inversely with the price of the good or service
Law of supply
Economic principle which states that the quantity of a good or service that will be offered for sale varies in direct relation to its price
Law of supply and demand
Economic principle which states that the supply of a good or service will increase when demand is great and decrease when demand is low
Natural resources
Items found in nature that are used to produce goods and services
Need
Something required or essential that is lacking
Noneconomic want
Desires for things that can be obtained without spending money
Opportunity cost
The benefit that is lost when you decide to use scarce resources for one purpose rather than for another
Price
The amount of money paid for a good, service, or resource
Production
The economic process or activity of producing goods and services
Scarcity
A condition resulting from the gap between limited resources and unlimited wants for goods and services
Supply
The quantity of a good or service that sellers are able and willing to offer for sale at a specified price in a given time period
Trade-off
Giving up all or a part of one thing in order to get something else
Want
A desire for something that is not required
Command economy:
An economic system in which all or many of the means of production and distribution are owned and controlled by the government
Communism:
A command economic system in which the government controls the economic system and does not allow private ownership of the means of production and distribution
Economic system:
The organized way in which a country handles its economic decisions and solves its economic problems
Market economy:
An economic system in which the questions of what, how, and for whom goods will be produced are answered by individuals and businesses in the marketplace
Socialism
A modified command economic system in which government owns the basic means of production and allows private ownership of businesses as well
Traditional economy:
An economic system in which people produce only what they must have in order to exist; all economic decisions are based on habit and tradition
