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27 terms

PBF Unit 1.01

Principles of Business and Finance fall 2010 student.
STUDY
PLAY
Mixed economy
Combines elements of the command and market economies
Entrepreneurial resources
The initiative to combine natural, human, and capital resources
Opportunity cost
Value of the next-best alternative that is forgone to produce or obtain another product
Competitors
Businesses that offer the same goods to the same customers
Producers
Individuals and organizations that determine which goods and services will be available for consumption
Economic decision-making
Process of choosing which needs or wants will be satisfied
Economic resources
Means from which goods and services are produced
Private property
Right to purchase, use, and discard of things of value
Services
Activities that can be consumed at the time of purchase to satisfy needs and wants
Scarcity
Condition that exists when wants or needs exceed resources available
Economics
Study of the decisions made for production, distribution, and consumption of goods and services to satisfy needs and wants
Needs
Necessities required for living
Consumer
Buys and uses the goods and services
Capital resources
Goods and money used in the production of goods and services
Natural resources
Raw materials supplied by nature
Human resources
People using efforts, knowledge, and skills at work to produce goods and services
Free enterprise
Economic system which freedom to consume and produce goods and services exists
Traditional economy
Economic system in which decisions are based on customs and centered on family
Goods
Items purchased to satisfy needs and wants
Profit
Money left after selling goods and services and costs of operating a business have been paid
Wants
Goods that are purchased to add comfort or pleasure to life
Marketplace
Anywhere goods and services exchange hands
Tradeoff
Process of giving up something for gaining something else
Market economy
Goods and services are owned and controlled by the people
Freedom of choice
Opportunity to make choices of goods and services and accept consequences of decisions
Command economy
Economics system in which the government owns resources and dictates what is produced
Market price
The point where supply and demand are equal.