EC-070
What is the main goal of most businesses?
To earn a profit by providing goods or services people want.
What is an economic good?
A physical product you can see and touch
What are the four factors of production?
Land, Labor, Capital, and Entrepreneurship.
What is scarcity?
The basic economic problem of having unlimited wants but limited resources.
What is the Law of Demand?
What is the Law of Demand?
What is a stakeholder?
Anyone impacted by a business, including employees, customers, owners, and the local community.
What is an economic service?
An activity or work done for someone else
What is a land resource?
Any natural resource found in nature, like water, timber, or oil.
What is opportunity cost?
The next best choice you give up when you make a decision.
What is the Law of Supply
As prices go up, sellers want to produce more. As prices go down, they produce less.
What is corporate social responsibility?
The idea that a business should do good for society, not just make money.
What is a consumer good?
A product bought by an individual for personal use.
What is a labor resource?
The work, time, and effort provided by employees.
What are the four basic economic activities?
Production, distribution, exchange, and consumption.
What happens when there is a shortage of a product?
Demand is higher than supply, which usually causes the price to go up.
How can a business positively impact its community?
By creating local jobs, donating to charities, and using eco-friendly practices.
What is an industrial good?
A product bought by a business to use in its operations or to make other products.
What is a capital resource?
Human-made tools, machinery, and buildings used to make goods
What is consumption?
The act of buying or using goods and services to satisfy a need.
What is a monopoly?
A market where there is only one company selling a product, giving them total control over prices.
Why is business ethics important?
It helps businesses build trust with customers and avoid costly legal issues.
Why do economic goods and services cost money?
Because the resources used to make them are limited
What role does an entrepreneur play?
They take the financial risk to combine land, labor, and capital to start a business.
Why must individuals and businesses make trade-offs?
Because time, money, and resources are limited, so you can't have everything.
What is pure competition?
A market with many sellers offering identical products, keeping prices low and fair.