Business Structures
A business organization owned and controlled by one person
Sole Proprietorship
THE DESIRE TO OWN SOMETHING AND THE ABILITY TO PAY FOR IT
Demand
A general increase in prices across an economy
Inflation
Tax on imported goods
Tariff
The total value of all goods and services produced in a country in a given year
Gross Domestic Product
A business owned by stockholders
Corporation
A good consumers will demand more of when their income increases.
Normal Good
The study of how people seek to satisfy their needs and wants by making choices.
Economics
The idea of supporting trade barriers
Protectionism
GDP measured in current dollars
Nominal GDP
A form of business organization with two or more owners who share the risks and the profits
Partnership
Describes demand that is not very sensitive to price changes
Inelastic
The fact that limited amounts of goods and services are available to meet unlimited wants and needs.
Scarcity
Refers to the ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.
Comparative Advantage
GDP adjusted for inflation
Real GDP
A license that allows one to use the trademarks and processes under a business's name
Franchise
A measure of the way quantity supplied reacts to a change in price.
Elasticity of Supply
An independent agency of the United States government that protects the funds depositors place in banks and savings.
FDIC
A sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.
Subsidy
The total values of goods nd services produced by a country in a given year, both within and outside its borders.
Gross National Product
Advantages include limited liability for owners and can sell stocks to raise money
Corporation
The point of balance at which quantity demanded equals quantity supplied
Equilibrium
In a trade-off, this is the most desirable alternative given up as a result of the decision
Opportunity Cost
The EU and NAFTA are examples of
Free Trade Zones
A product used to produce a final good.
Intermediate good