What is Economics?
__________ refers to a worth that can be expressed in dollars and cents.
Value
What type of economy does the United States have?
Capitalism
______________ is a form of business recognized by law as a separate legal entity with all the rights of an individual.
Corporation
Define a Merger
The combination of two or more companies into a single new entity where the assets, liabilities, and ownership of the merging companies are transferred to the newly formed company.
___________ is the study of how people try to satisfy seemingly ____________ wants through the careful use of relatively ________ resources.
1. Economics
2. Unlimited
3. Scarce/Limited
What is a mixed economy?
Occurs when countries combine elements from different types of economies.
What is a Sole Proprietorship?
A business that is owned and ran by a single individual.
________________ is a noncash charge the firm takes for the general wear and tear on its capital goods.
Depreciation
What is the difference between a need and a want in economics?
Need - A basic requirement for survival
Want - Something we would like to have but is not necessary for survival.
_____________ is an economy where a central authority makes the decisions about WHAT, HOW, and FOR WHOM to produce.
Command Economy
___________ is a business that is jointly owned by _____ or more people.
1. Partnership
2. Two
What is a multinational corporation?
A corporation that has manufacturing or service operations in a number of different countries.
What is the difference between a durable good and a nondurable good?
Durable Good - Last 3 years or more when used on a regular basis.
Nondurable Good - Lasts fewer than 3 years when used on a regular basis.
What is a market economy?
An economy where people make decisions in their own best interest and feature private ownership or resources.
What is an opportunity cost?
The loss of potential gain from other alternatives when on alternative is chose.
What is a conglomerate?
Occurs when a corporation becomes so large through mergers and acquisitions.
What are the three basic economic questions?
WHAT to produce, HOW to produce, and FOR WHOM to produce.
What are the 4 major economic systems that exist?
Traditional, command, market, and mixed economy.
What are the 3 forms of business organizations?
Sole Proprietorship, Partnership, and Corporation.
Name and explain the two different types of mergers
Horizontal Merger - Occurs when firms that produce the same kind of product join together.
Vertical Merger - Occurs when firms involved in different stages of manufacturing or marketing join together.