Vocabulary
What is a substitute good?
A substitute good is a good that can take the place of another good. For instance, people who drink a hot beverage like coffee can substitute it for tea if they need to.
What 5 factors can cause a change in demand?
Population, taste, change in income, Complementary goods, Substitute Goods
What is the debt ceiling?
What is a Patent?
gives a company exclusive rights to sell a new good or service for a specific period of time
What is monopoly?(Not the board game)
A single seller, with a unique product, controls the market and barriers exist that prevent firms from entering the market
What is a complementary good?
Complementary goods are goods that are used together. For example, peanut butter is often used with jelly.
What occurs with demand for a good when people’s income rises?
The demand for a good increases.
Is the United States In Debt?
Yes
Why should/need a licence to sell goods?
grants firms the right to operate a business land, radio/TV frequencies
What is market power?
the ability to control prices and output
What is demand?
the amount of a good or service that consumers are willing to buy.
If a good becomes popular or fashionable, what will happen with demand?
The demand will rise.
What are at risk if the debt keeps climbing?
Social Security and Medicare
Why are partnerships good in business?
A partnership could mean your business will have access to new products, reach a new market, block a competitor (through an exclusive contract) or increase customer loyalty
What is price fixing?
an agreement to sell at the same or very similar prices
What is Law of Demand?
says that consumers are willing to buy (demand) more of a good or service when prices go down.
In which way would an increase in population affect demand?
The demand would rise since it is more sought after.
How much debt is the United States in?
20 trillion
What is a entrepreneur?
a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so
What is a Cartel?
a formal organization of producers to coordinate prices and production
What is Start-up Costs?
expenses that a new business must pay before it can begin to produce goods
If the price for Sprite increases, what will happen with the demand for a substitute good like 7-UP?
7-UP would decrease since sprite is increasing
What happens to goods when the price keeps going up because of the debt ceiling?
The demand for the goods go down since nobody can afford to buy it.
What is Shark Tank?
Shark Tank is a TV show in which different businesses come out to pitch their ideas and try to get a investment and partnership with a shark
What are antitrust laws?
the government watches large companies closely to ensure that it does not unfairly force out its competitors