What is commerce? Flashcards
What is the definition of commerce?
Commerce refers to how people earn their income, how people spend their money, which goods and services are produced, how goods and services are produced, and how government and the law influence people’s commercial behavior.
What is a consumer?
A consumer is an individual who purchases goods and services to satisfy their needs and wants.
What are goods?
Goods are physical and tangible products that are produced for consumers to purchase and use.
What are the types of goods?
The two types of goods are durable goods (can be used multiple times) and non-durable goods (can only be used once).
What are services?
Services refer to the actions that one person will do for another in return for payment.
What is the difference between goods and services?
Goods are physical and tangible products, while services refer to actions performed by one person for another in return for payment.
What is opportunity cost?
Opportunity cost refers to what an individual gives up in order to satisfy a need or want. For example, giving up buying a car in order to pay off a house.
What is scarcity?
Scarcity refers to the concept that we have unlimited wants, but limited resources to satisfy those wants.
What is capital?
Capital refers to anything that is used to invest, such as goods or money.
What is enterprise?
Enterprise refers to any business willing to take risks.
