Econ Terms
A person who starts a new business
Who is an entrepreneur?
owning a business and taking all the risks plus profits
what is a proprietorship?
based on custom
what is a traditional economy?
three groups involved in economic flow
what are households, businesses, and government
the amount of money exchanged for a good or service
what is price?
what you lose when you make a choice
what is your opportunity cost?
a group acting as a single entity
what is a corporation?
type found in the U.S
what is a mixed economy?
households sell this to businesses
what are resources?
how much you are willing to pay for an item or service at a certain price
what is demand?
natural, human, capital, and entrepreneurship
What are resources or factors of production?
two or more people sharing risks and profits
what is a partnership?
centrally controlled
what is a command economy?
businesses buy resources to make this
what are products or services?
the amount of a product or service you are willing and able to sell at a certain price
what is your supply?
inability to satisfy all wants at the same time
what is scarcity?
McDonalds, Apple, Sony
What are corporations?
minimal governmental involvement , profit motive
used to provide public goods and services
what is tax revenue?
this happens to the price of an item or service when demand increases
what is an increase?
using goods and services
what is consumption?
this type of business assumes the least amount of risk
what is a corporation?
this determines how an economic system is defined
what is the amount of governmental involvement?
two groups paying taxes to the government
what are households and businesses?
sweet spot where supply and demand meet (be specific)
what is equilibrium price?