Supply & Demand
What is the term for how much of a product buyers want to purchase?
Demand
What condition happens when buyers want more items than stores have in stock?
Shortage
What is the most common form of business organization in the US, owned and operated by a single person?
Sole Proprietorship
What term refers to the accumulated knowledge, specialized skills, education, and training that increase a worker’s productivity and value?
Human Capital
What do you buy to own a tiny fraction or share of a corporation?
Stock
What Latin phrase, used constantly in supply and demand analysis, translates to "all other things being equal"?
Ceteris Paribus
What condition happens when stores have leftover items that nobody is buying?
Surplus
What major legal drawback do sole proprietors and general partners face where personal assets (house, savings) can be seized to pay off business debts?
Personal Liability
In the labor market, who provides the supply of labor?
Workers
What are cash profit payments paid out directly to shareholders called?
Dividends
According to the Law of Demand, as price goes UP, what happens to quantity demanded?
It goes down
What should a store do to its prices to clear out a surplus?
Lower Prices
In a market economy, what fundamental role does profit serve for entrepreneurs who take on high failure risks?
Incentive (or financial reward) for taking uninsurable risks, innovating, and organizing resources
In the labor market, who represents the demand for labor?
Employers
What general term describes a stock market that is rising and growing in value?
Bull Market
If the price of gas rises by 30% but drivers barely change the amount of gas they purchase, gas is said to have what type of demand?
Inelastic Demand
What is a government legal limit on the maximum price a store can charge called?
Price Ceiling
Although Corporations make up only about 20% of all US businesses, approximately what percentage of total US sales revenue do they generate?
80 Percent
What organized group of workers fights together for better pay and safer working conditions?
Labor Union
Money used to start or expand a business is known as what type of capital?
Financial Capital
Name two specific factors from the ROTTEN acronym that cause the Supply curve to shift to the right or left.
Resource/Input Costs, Other goods' profitability, Technology, Taxes/Government policies, Expectations of sellers, or Number of suppliers
Minimum wage is an example of what type of government price control?
Price Floor
What term describes the unique corporate tax burden where corporate earnings are taxed at the company level and then taxed again as individual income when paid out as dividends?
Double Taxation
What law was passed in 1963 to guard against wage discrimination?
The Equal Pay Act
Which major stock market index tracks 30 large, well-established "blue-chip" companies to gauge the overall health of the stock market?
The Dow Jones