Unit 1
The idea that useful and abundant items are worth less than items are scarce but not as useful is called
Paradox of value
An economy where people make all decisions in society.
market
Most common form of business organization
Sole Prop
any economic decision is called a
trade off
an economy where the government makes all decisions
command
What business organization is created by 2 or more people
partnership
the result or best alternative of a trade off
opportunity costs
an economy based on rituals and historical customs
traditional
Give one reason why an entrepreneur would want to turn their Sole Proprietorship into a Corporation
To legally separate the firm's actions from his/her personal actions
To raise more capital for the business
To expand the business to other locations
To reduce liability of the owner
Situation that arises from limited resources and unlimited wants
scarcity
this economy is where government and private corporations work together
mixed or mixed market
This is the total dollar value of goods and services produced by the economy in one year
GDP or Gross Domestic Product
This is the label given to the profit distributed by a corporation to it's part owners
Dividend
***4 factors of production and what each one means
land- natural resources
labor- people's skills and abilities
capital- factories and machines
entrepreneurship - risk taking
A restaurant chain that allows outside entrepreneurs to open and manage individual locations is known as
Franchise