1
Direct benefit received by the owner of a good
Value in use
Economy that allows people to make their own economic choices
Free Enterprise or Free Market
Enjoyment of many goods, including services
Prosperity
Type of good expecting to last at least three years
Durable good
Total value of a business minus any liabilities
Equity
Type of good capable of being used in conjunction with another
Complementary good
Diminishing value of goods caused by wear and time
Depreciation
Intangible item for which people will pay
Service
Economy that has a system where the centralized authority controls the production, distribution, and consumption of goods.
Command
What type of good is a computer that is used for personal home use?
Consumer
Wrote The Wealth of Nations
Adam Smith
Study of specific components within a major economy
Microeconomics
Founder of the Austrian School of Economics
Carl Menger
Cost of people running their own establishments or hiring managers to run the business for them
Wage of Management
What is the quantity supplied of a good being greater than the quantity bought at a certain price?
Surplus
Type of economy a communist country would have
Command
Type of good is a forklift used to transport imported goods within a warehouse?
Capital
Taxes that a government applies only to imported goods
Tariffs
Monetary government aid given to a business to encourage production
Subsidies
What type of good is a truck used to deliver flowers?
Capital
Type of good that does not last more than three years
Nondurable good
What do consumers send to producers to let them know what goods are wanted at what prices?
Market Signals
The result of a price ceiling would be what?
Shortage
Separation of work to be performed into individualized tasks
Division of labor
The person who risks his investment of time and money in the management of an economic enterprise
Entrepreneur