Introduction
Individuals or organizations who try to earn a profit by providing products that satisfy people's needs.
What is business?
A. Owners, employees, customers
B. Groups that have a stake in the success and outcome of a business.
A. Who are people involved in business activities?
B. What are stakeholders?
Land, forests, minerals, water, and other things that are not made by people.
What are natural resources?
The study of how resources are distributed for the production of good and services within a social system.
What is economics?
A. Only one business providing a product in a given market.
B. Very few businesses selling a product.
A. What is a monopoly?
B. What is an oligopoly?
A. The number of goods and services that consumers are willing to buy at different prices at a specific time.
B. The number of products—goods and services—that businesses are willing to sell at different prices at a specific time.
C. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time.
A. What is demand?
B. What is supply?
C. What is equilibrium price?
Management, marketing, finance...
What are the activities of businesses?
The physical and mental abilities that people use to produce goods and services.
What are human resources?
Also called labor.
What should be produced?
How should it be produced?
Who should produce it?
What are the Basic Economic Questions?
A. The market structure that exists when there are many small businesses selling one standardized product.
B. The market structure that exists when there are fewer businesses than in a pure-competition environment and the differences among the goods they sell are small.
A. What is pure competition?
B. What is monopolistic competition?
A good (automobile, calculator, beverage, or notebook).
A service (dry cleaning, overnight mail delivery, a haircut, a checkup by a doctor).
An idea (consultants and attorneys, for example, generate ideas for solving problems).
What are types of products?
Organizations that may provide goods or services but do not have the fundamental purpose of earning profits.
What are nonprofit organizations?
The funds used to acquire the natural and human resources needed to provide products.
What are financial resources?
Also called capital
A. An economic system where individuals own and operate the majority of businesses that provide goods and services.
B. An economic system where the people, without regard to class, own all the nation's resources.
C. An economic system where the government owns and operates basic industries, but individuals own most businesses.
A. What is capitalism? (Free Enterprise)
B. What is communism?
C. What is socialism? (Command Economy)
A. A slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers.
B. The situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment.
A. What is economic contraction?
B. What is economic expansion?
A. A condition characterized by a continuing rise in prices.
B. A condition where unemployment is very high, consumer spending is low, and business output is reduced.
C. A decline in production, employment, and income.
A. What is inflation?
B. What is depression?
C. What is recession?
Refers to the level of wealth and material comfort that people have available to them.
What is standard of living?
Natural resources, human resources, and financial resources are....
What are factors of production?
A description of how a particular society distributes its resources to produce goods and services.
What is an economic system?
The condition in which a nation spends more than it takes in from taxes.
What is budget deficit?
The difference between what it costs to make and sell a product and what a customer will pay for it.
What is profit?
The condition in which a percentage of the population wants to work but is unable to find jobs.
What is unemployment?
An individual who risks his or her wealth, time, and effort to develop, for profit, an innovative product or way of doing something.
What is an entrepreneur?
Economies made up of elements from more than one economic system.
What is a mixed economy?
The sum of all goods and services produced in a country during a year.
What is GDP?
Gross Domestic Product