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The problem of limited resources
What is Scarcity?
A share of ownership in a corporation
What is Stock?
Human effort used to make goods and services
What is Labor?
A huge organization that is formed by the merger of businesses that produce, supply, or sell a number of unrelated goods
What is Conglomerate?
They have laws that protect the environment, protect worker's safety, and protect consumers from harmful products
How does the government oversee our economy?
Money invested in businesses
What is Capital?
Profits paid to corporate stockholders
What is Dividends?
Main factor in setting prices that drives companies to improve their products
What is Free Competition?
Principle that business owners in a free market are allowed to run their business in a way they see fit, with little gov. interference
What is Free Enterprise System?
Economy of Scale
What is it called when goods can be produced more efficiently by a larger company?
An economic rule that states that buyers will demand more products when they can buy them at lower prices and fewer products when they must buy them at higher prices
What is Law of Demand?
Business organization owned by one person
What is Sole Proprietor?
A company that is the only one providing a service or selling a product
What is Monopoly?
A business organization chartered by a state government and given power to conduct business, sell stock, and receive protection of state laws
What is Corporation?
A market economy
How can the U.S. Economic system be labeled? A command economy, a market economy, traditional economy?
The income a business has left after paying its expenses
What is Profit?
An economic rule that states that businesses will provide more products when they can sell them must sell them at lower prices
What is Law of Supply?
Business organizations that provide goods and services without seeking to earn a profit
What is Non-profit Organization?
To raise money $$$
What are the reasons a corporation sells stocks?
They represent stockholders and they elect people to run the company
What are the duties of a corporation board of directors?
A person who organizes, manages, and assumes the risks of a business; a business owner
What is Entrepreneur?
An economic system based on private ownership of the means
What is Capitalism?
An economic system in which buyers and sellers are free to exchange goods and services as they choose
What is Free Market?
Freedoms to compete, own property, buy and sell, workers to compete for jobs and to earn profits
What are the economic freedoms Americans enjoy?
Limited
What is the role of the U.S. Government in a free market?