12 terms

2.02 Economic Terms, 2.03 & 2.04 Economic Terms

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Terms in this set (...)

Market
Includes the customers and locations that a business wants to serve.
Supply
How much of a good or service a producer is willing and able to produce at different prices.
Demand
An individual's need or desire for a good or service at a given price.
Law of Demand
As prices fall for a particular good or service, the demand for that item will increase and vice-versa.
Law of Supply
As the price of a particular good or service increases, the supply for that item will also be increased and vice-versa.
Price
The amount at which a good or service will be sold in a market.
Stock Market
Where shares of stocks (shares of ownership in corporations) and other securities (such as bonds and futures) are bought and sold (or traded)—not necessarily a "place" with the prevalence of electronic transactions,
Stock exchange
physical location where stocks are listed and bought and sold (or traded); New York Stock Exchange (NYSE), American Stock Exchange, NASDAQ—virtual exchange
Bull market
Stock prices are going up. Consumers are optimistic and buy stock in anticipation of gains. High trading volume of stocks. Dealers are more likely to buy than to sell stock.
Bear market
Stock prices are going down or falling. Consumers are pessimistic and reluctant to buy stock for fear of losing money. Investors are motivated to sell stock so they won't lose more money.
e-Commerce
Buying and selling of goods and services on the Internet. Also called electronic commerce, e-business. Globally competitive & available 24/7.
Equilibrium Point
Where supply and demand meet