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Economics Volcab
Term | Definition |
---|---|
Incentives | things that incite or motivate you to change your economic behavior |
Consumer sovereignty | consumers determine through purchases what goods and services will be produced |
Price | the amount of money exchanged for a good or service |
Profit | consists of earning after all expenses have been paid |
Circular flow | resources, goods, services, and money flowing throughout the economy |
Opportunity cost | what is given up when a choice is made- the highest valued alternative |
Sole proprietorship | a business owned by one person who takes all of the risks and all of the profits |
Private property | property owned by individuals and businesses for use without undue interference by the government |
Resources | factors of production that are used in the production of goods and services |
Production | the combining of human, natural, capital, and business resources to make goods and services |
Entrepreneur | a person who takes a risk to produce goods and services in search of a profit |
Scarcity | the inability to satisfy all wants at the same time |
Competition | rivalry between producers and sellers of goods and services that results in better quality goods and services at a lower price |
Human resources | time, energy, and skills needed to produce goods and services |
Corporation | a large business with many owners called stock holders |
Natural resources | the resources from the land that are needed to produce goods and services |
Consumption | using goods and services |
Choice | selecting an item or action from a set of alternatives |
Partnership | a form of business owned by 2 or more individuals who share all of the risks and profits |
Capital resources | the tools, machinery, factories and money that are used in providing goods and services |
Supply | the amount of a good or service that producers are willing and able to sell at a certain price |
Demand | the amount of a good or service that consumers are willing and able to buy at a certain price |
Consumer | people who buy and use products |
Producer | people who use resources to provide goods and services |
Economy | the management of the resources of a country |
Command economy | an economy in which production, investment, prices, and incomes are determined centrally by a government. |
Mixed Market Economy | An economic system in which both the private enterprise and a degree of state monopoly |
Free Market Economy | , prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy. |
Traditional Economy | economic system in which traditions, customs, and beliefs help shape the goods and the services the economy produces, as well as the rules and manner of their distribution. |
Corporation | a separate, legal entity guided by a group of officers known as the board of directors. |
Partnership | |
Limited Liability | a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership |
Marketing | the action or business of promoting and selling products or services, including market research and advertising. |
16th Amendment | Allows governmment to levy taxes |