Terms : Hide Images
| 215277080 | economics | study of human efforts to satisfy what appear to be unlimited and competing wants | 0 | |
| 215277081 | scarcity | the condition that arises because society does not have enough resources to produce all the things people like to have | 1 | |
| 215277082 | four factors of production | land, natural resources, Capital (good/financial), labor, entrepreneur | 2 | |
| 215277083 | land | includes "gifts of nature" created by human effort | 3 | |
| 215277084 | natural resources | deserts, fertile fields, forests mineral deposits, cattle, whales, sunshine, climate necessary to grow crops | 4 | |
| 215277085 | capital goods | the tools, equipment and factories used in the production of goods and services | 5 | |
| 215277086 | financial capital | money used to buy the tools and equipment used in production | 6 | |
| 215277087 | labor | people with all their efforts, abilities, and skills | 7 | |
| 215277088 | entrepreneur | individuals who start a new business or bring a product to market | 8 | |
| 215277089 | what are characteristics and motivation of an entrepreneur? | The respondent entrepreneurs were motivated primarily by the desire to create something new, the desire for autonomy, wealth and financial independence, the achievement of personal objectives and the propensity for action ('doing'). | 9 | |
| 215277090 | 3 basic economic questions | what to produce? how to produce? for whom to produce? | 10 | |
| 215277091 | purpose of government | security stability | 11 | |
| 215277092 | Trade-offs | an alternative choice whenever one makes an economic decision | 12 | |
| 215277093 | opportunity cost | the cost of the next best alternative use of money, tie, or resources when one choice is made rather than another. | 13 | |
| 215277094 | production possibilites frontier | diagram representing maximum combinations of goods and/or services an economy can produce when all productive resources are fully employed. | 14 | |
| 215277095 | cost benefit analysis | a way of thinking that compares the cost of an action to its benefits | 15 | |
| 215277096 | economic systems | an organized way of providing for the wants and needs of their people 3 types; traditional economy, command economy, market economy | 16 | |
| 215277097 | traditional economy | the allocation of scarce resources, and nearly all other economic activities, stems from rituals, habit, or customs. | 17 | |
| 215277098 | command economy | central authority makes most of the what, how, and for whom decisions. | 18 | |
| 215277099 | market economy | (capitalism or free enterprise system) people and firms act in their own self-interest to answer what, how, and for whom questions. | 19 | |
| 215277100 | capitalism | private citizens own factors of production, an economic system based on private ownership of capital | 20 | |
| 215277101 | mixed economy | capitalism with some government involvement | 21 | |
| 215277102 | communism | a form of socialism that abolishes private ownership | 22 | |
| 215277103 | pure capitalism | The private ownership of resources and the market distribution of products | 23 | |
| 215277104 | 3 types of business organizations | sole proprietorship, partnership, corporations | 24 | |
| 215277105 | sole proprietorship | business owned and run by one person advantages 1. owner=boss 2. easiest kind of business to organize 3. business profits are made by individual owners 4.owner can quickly react to business problems 5. does not have to pay corporate income tax disadvantages 1. funding limited by amount of personal savings or ability to borrow 2.lack of opportunities for employees since firms are generally small 3.unlimited liability 4.death of owner can result in termination of business | 25 | |
| 215293022 | partnership | business jointly owned by 2 or more people. advantages 1. business profits are made by individual owners 2. owners can quickly react to business problems 3. does not have to pay corporate income tax 4. combines funds of more than 1 person for start up of expansion disadvantages 1.funding limited by amount of personal savings and ability to borrow 2. each owner acts on behalf of the business and is personally responsible 3. lack of opportunities for employees since firms are generally small 4. often requires a lawyer to formally set up the business 5.unlimited liability 6. death of owners can result in termination of business | 26 | |
| 215293023 | corporations | a business recognized by law as a separate entity having all the rights of an individual advantages 1. can continue operations indefinitely 2. limited liability 3. ownership can easily be transferred through transfer of stock 4. people can buy and cell their shares of ownership without business ending 5. can grow to be very large disadvantages 1. often requires lawyer to formally set up business 2. double taxation 3. must pay special tax on profits 4. management often separates from ownership | 27 | |
| 215293024 | merger | a combination of 2 or more businesses to form a single firm (horizontal and vertical) | 28 | |
| 215293025 | horizontal merger | 2 or more firms that produce the same kind of product join forces | 29 | |
| 215293026 | vertical merger | 2 or more firms involved in different steps of manufacturing or marketing join together | 30 | |
| 215293027 | conglomerate | a firm that has at least 4 businesses, each making unrelated products, none of which is responsible for the majority of its sales | 31 | |
| 215293028 | multinational | a corporation that has manufacturing or service operations in several different countries | 32 | |
| 215293029 | non-profit organizations | operates in a business like way to promote the collective interests of its members rather than seek financial gain for its owners | 33 | |
| 215317894 | law of demand | quantity demanded of a good or service varies inversely with its price | 34 | |
| 215317895 | demand | desire, ability, and willingness to buy a product | 35 | |
| 215317896 | demand curve | a graph showing the quantity demanded at each and every price that might prevail in the market | 36 | |
| 215317897 | market demand curve | demand curve that shows the quantities demanded by everyone that is interested in purchasing the product | 37 | |
| 215317898 | reasons for demand or determinants of demand | 1. consumer income 2. consumer tastes 3. substitutes 4. compliments 5.changes in expectations 6. number of consumers | 38 | |
| 215317899 | consumer income | how much money people in the market have | 39 | |
| 215317900 | consumer tastes | the preference towards different products by a consumer. causes change in demand | 40 | |
| 215317901 | substitutes | goods used in place of one another | 41 | |
| 215317902 | compliments | A product that is usually bought with another, together. (ex. hot dogs and hot dog buns) | 42 | |
| 215317903 | changes in expectation | what people or businesses anticipate will happen, especially in terms of markets and prices. | 43 | |
| 215326505 | number of consumers | more consumers=more demand | 44 | |
| 215326506 | elastic demand | when a given change in price causes a relatively larger change in quantity demanded | 45 | |
| 215326507 | inelastic demand | a given change in price causes a relatively smaller change in quantity demanded | 46 | |
| 215326508 | unit elastic demand | given change in price causes a proportional demand, percentage change in quantity demanded equals percentage change in price | 47 | |
| 215326509 | elastic supply | when a given change in price causes a relatively larger change in quantity supplied | 48 | |
| 215326510 | inelastic supply | a given change in price causes a relatively smaller change in quantity supplied | 49 | |
| 215326511 | unit elastic supply | given change in price causes a proportional supplied, percentage change in quantity supplied equals percentage change in price | 50 | |
| 215326512 | market equilibrium | a situation in which prices are relatively stable, and quantity of goods or services supplied is equal to the quantity demanded | 51 | |
| 215326513 | surplus | a situation in which quantity supplied is greater than the quantity demanded at a given price | 52 | |
| 215326514 | shortage | a situation in which the quantity demanded is greater than the quantity supplied | 53 | |
| 215326515 | price ceiling | maximum legal price that can be charged for a product | 54 | |
| 215326516 | price floors | lowest legal price that can be payed for services | 55 |
