activity 1
Business
Any that seeks to provide goods and services to make a profit.
2
Profit
What a business makes more than they spend.
3
Revenue
Total amount of money a business brings in.
4
Entrepreneur
Someone who takes the risk of time and money to start a business.
5
Standard of living
The amount of money we have to buy goods and services.
6
Quality of life
General well being of our society.
7
Factors of production
Land
Labor
Capitol
Entrepreneurship
Knowledge
8
Efficiency
Producing goods and services using the least amount of resources.
9
Productivity
The output you generate given the input.
10
Effectiveness
Producing the desired result.
11
Demography
Statistical study of human population.
12
Manufacturing to a service economy
Tangible products-->intangible products.
13
Economics
How society chooses to employ their resources to produce goods and services and distribute them
for consumption.
14
Freedoms under free market
The right to private property.
The right to own a business and to keep the profits.
The right to freedom of competition.
The right to freedom of choice.
15
Decisions made in a free market (who and what)
What to produce and how much to produce is controlled by the consumers.
16
Capitalism
An economic system in which the means of production and distribution are privately or corporately
owned and development is proportionate to the accumulation and reinvestment of profits gained in a
free market.
17
Socialism
Economic system based on the premise that most businesses be owned by the government.
18
Communism
Political and economic system where the government makes all economic decisions and own all
factors of production.
19
Supply
The quantity of products that manufactures are willing to sell at different prices and different times.
20
Demand
The quantity of products consumers are willing to buy at different prices at a specific time.
21
Perfect competition
Many sellers in the market and no one seller has enough power to dictate the price in the industry.
22
Monopolistic competition
When a large number of sellers of products that are very similar but the difference is in the mind of
the consumers. (Coke vs. Pepsi)
23
Oligopoly competition
Few sellers dominate a market. Initial investment to enter the market is very high. (Automobiles)
24
Monopoly competition
Market where there is one only seller of a product or a service.
25
Mixed economies
An economic system that allows for the simultaneous operation of publicly and privately owned
enterprises.
26
Command economies
Government controls the economy.
27
Gross domestic product
Total value of goods and services produces in a country in a given year.
28
Consumer price index
Monthly statistic that measures the pace of inflation.
29
Deflation
Average prices of goods and services are declining.
30
Disinflation
The price increases are slowing. Inflation rate is declining.
31
Monetary policy
Controlled by federal reserve.
Money supply (buy and sell bonds
Interest rates
32
Fiscal policy
Taxes (raised during boom or recovery. lowered during recession and depression)
Government spending
33
Exporting
Selling to another country.
34
Importing
Buying from another country.
35
Where does a chunk of our population live?
China and India.
36
Favorable balance of trade
null
37
Unfavorable balance of trade
null
38
Dumping
Sell products at lower prices than they sell in their country in another country.
39
Balance of payments
Difference between money coming in and out of the country.
40
Trade deficit
Buying more than we are exporting.
41
Licensing
Allows foreign companies to produce a product at a fee.
42
Contract manufacturing
Allows foreign countries to produce private label good and we attach our brand name to it and sell it
in our country.
43
Franchising
null
44
Joint venture
Partnership where two or more companies usually from different countries who join together for a
major project. (Short term)
45
Strategic alliance
Partnership between companies where they try and have long term agreements.
46
Culture
null
47
Ethnocentric
Our country is the best.
48
Trade protectionism
Government using regulation to try to limit imports into the country.
49
Protective tariff
Designed to raise price of individual product.
50
Revenue tariff
Raise money for the government.
51
Import quotas
Limit on number of items.
52
Common market
Regional groups of countries that have common tariffs, coordination of laws, trying to facilitate trade
among nations.
53
Frictional unemployment
Laid off or between jobs.
54
Structural unemployment
How the economy is.
55
Cyclical unemployment
Higher and lower unemployment.
56
Seasonal unemployment
Strawberry farmers.