Supply and demand
What is demand?
The amount of a good people are willing and able to buy.
What is a market economy?
An economy where decisions are made by individuals and businesses.
What are factors of production?
Land, labor, capital, and entrepreneurship.
What is inflation?
A rise in prices over time.
What is a sole proprietorship?
A business owned and run by one person.
What is supply?
The amount of a good producers are willing to sell.
What is a command economy?
An economy controlled by the government.
What is labor?
Human effort used to produce goods/services.
What is unemployment?
When people who want jobs cannot find work.
What is a partnership?
A business owned by two or more people who share profits and responsibilities.
What happens when demand increases?
Price and quantity usually increase.
What is a mixed economy?
A combination of market and command systems.
What is capital?
Tools, machines, and buildings used in production.
What is GDP?
Total value of goods and services produced in a country.
What is a corporation?
A large business that is legally separate from its owners.
What happens when supply increases?
Price usually decreases, quantity increases.
What is competition?
When businesses compete to sell goods/services.
What is entrepreneurship?
The ability to start and run a business.
What are taxes?
Money paid to the government to fund services.
What is limited liability?
Protection that prevents owners from losing personal assets beyond their investment.
What is equilibrium?
The point where supply equals demand.
What is a monopoly?
When one company controls an entire market.
What is profit?
Revenue minus costs.
What is a budget deficit?
When government spending exceeds revenue.
What is profit?
The money a business makes after subtracting costs from revenue.