EC-907
Market economies
Market economies also have their share of problems. People are free to go into business for themselves, but they run the risk of financial loss.
Capital goods
Manufactured or constructed items that are used to produce goods and provide services
In business terms, income is the money
Received
Hazard risks
Potential events or situations that can cause injury or harm to people, property, or the environment
Oligopoly
A market structure in which there are relatively few sellers, and industry leaders usually determine prices
Participants
Participants include producers, consumers, and government.
Entrepreneur
An individual who: invents, develops, and distributes a good or provides a service; assumes the risks of starting and building a business; and receives personal and financial rewards for her/his efforts
Gross profit
Money left after the cost-of-goods expense is subtracted from total income
Corporation
A form of business ownership that is owned by stockholders who have purchased units or shares of the company
Sherman Antitrust Act
A federal regulation intended to prevent monopolies from forming and prices from being fixed
Medium of exchange
A medium of exchange is something of value that can be used to obtain goods and services.
Human resources
People who work to produce goods or services
Net profit
Money left after the cost-of-goods expense and the operating expense are each subtracted from the total income
Demographics
The physical and social characteristics of the population
One way that competition benefits business is by encouraging the creation of:
New Businesses
Traditional economic system
This economic system is based on traditions passed down through the generations. Some tradition is part of all economic systems, but it is the major characteristic of a traditional system.
Natural resources
Items that are found in nature and used to produce goods and services
Efficiency
Accomplishing a task with a minimum expenditure of time and effort
Markets
Arrangements for the buying and selling of goods and services
Monopoly
A type of market structure in which a market is controlled by one supplier, and there are no substitute goods or services readily available
Subsistence
Subsistence is a level of existence that barely supports life.
Private property
Anything of value that people own
The amount of money paid for raw materials and products sold is called
Cost of goods
Speculative risks
Chances of loss that may result in loss, no change, or gain
Market structure
The type of market, or environment, in which businesses operate