20 terms

Economics vocab.

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Proprietorship
A form of business organization with one owner who takes all the risks and gets all the profits.
Supply and Demand
Determines price.
Free Markets
Markets are allowed to operate without undue interference from the government.
Opportunity Cost
What is given up when a choice is made.
Competition
Rivalry between producers/sellers of a good or service that results in better quality and/or lower prices.
Resources
Factors that are used in the production of goods and services (human, natural, capital, entrepreneurship)
Entrepreneur
A person who takes a risk to produce goods and services in search of profit
Price
The amount of money exchanged for a good or service
Mixed Economy
the most common economic system in the world today (USA has this type)
Command Economy
type of economic system would you find in a county led by a dictator (North Korea has this type)
Private Property
Individuals and businesses have the right to own personal property.
Incentives
Things that incite or motivate; used to change economic behavior.
Consumer Sovereignty
Consumers determine through purchases what goods and services will be produced.
Choice
Selecting an item or action from a set of possible alternatives.
Corporation
A form of business organization that is authorized by law to act as a legal person regardless of the number of owners.
Production
The combining of human, natural, capital and entrepreneurship resources to make goods and services.
Partnership
A form of business organizations with two or more owners who share the risks and the profits.
Consumption
Using goods or services.
Scarcity
The inability to satisfy all wants at the same time.
Profit
Earnings, or what is left after all expenses have been paid
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