Economic Terms
The inability to satisfy all wants at the same time
SCARCITY
Economic decisions based on custom and family
Traditional Economy
1. The amount of a good or service that consumers are willing and able to buy at a certain price
2. The right to own personal property as well as the means of production without undue interference from the government
1. Demand
2. The right to Private Property
In this type of business organization, the owner takes all the risks and receives all the profits
(Sole) Proprietorship
Worldwide markets, buying and selling of goods and services by all nations
Global Economy
The amount of money exchanged for a good or service
PRICE
Economic decisions based on individual choice, consumer sovereignty, private property, competition, & profit
Free Market Economy
1. The amount of a good or service that producers are willing and able to sell at a certain price
2. Earnings after all expenses have been paid
1. Supply
2. Profit
A person who takes a risk to produce goods and services in search of profit
Entrepreneur
Governments use this from individuals and businesses to provide public goods and services.
Tax Revenue
The four types of RESOURCES are these
Natural, Human, Capital, and Entrepreneurship
Centrally planned economy with no consumer choice or private ownership of property or resources.
Command Economy
1. Making goods or providing services
2. Free markets are markets that are allowed to operate without undue interference by the -
1. Production
2. Government
A Form of business that is authorized by law, regardless of the number of owners to act as a legal entity (person)
Corporation
Banks receive DEPOSITS and make this to people
Loans
The option that is given up when you make a choice
OPPORTUNITY COST
The U.S. has this type of economic system
Mixed Economy
1. The use of goods and services is known as this
2. This results in better quality and lower prices in a Free Market Economy
1. Consumption
2. Competition
In the U.S. economy, these 3 things flow continuously among households, businesses, and markets
Resources, Goods, and Services
Virginia and the U.S. trade with other nations in order to do this
Increase Wealth
Used to change economic behavior - encourage consumption or saving
INCENTIVES
The most common type of economy where there is some government control over the Free
Mixed Economy
1. These determine what is produced
2. Determines through purchases what businesses produce and sell
1. Resources available and consumer preferences
2. Comsumers
Consumers determine through purchases what goods and services will be produced.
Consumer Sovereignty
Final Jeopardy time! The category is:
TYPES OF BUSINESSES;
If a business fails, the owners won’t be responsible for paying the business debts IF it is this type of business
Corporation