Vocab
Surplus?
A situation in which quantity supplied is greater than quantity demanded
what are some examples of negative incentives?
Library fines, parking tickets, speeding tickets
Why do businesses compete?
to get customers to choose their project (to get more money)
incentive?
a reason for doing something; something that stimulates action
What is supply?
number of items ready for sale
what are some examples of Positive incentives?
Kids eat free, buy one get one free, kohls cash
When do anti-competitive practices occur?
when a company tries to unfair limit the competition.
Philanthropy?
Charitable donation to public causes
what is demand?
number of items people want to buy
What is intrinsic?
inside (Ex: accomplishment)
What are some examples of methods businesses use to compete with each other?
lower prices, better quality, better customer service
what is a natural resource?
materials such as minerals, forests, water
Equilibrium?
A state of balance
What is the law of supply?
If price falls quantity supplied will fall
What is extrinsic motivation?
outside (Ex: money, fame, prize)
what are some examples of legal monopolys today?
USPS, National Football league, Microsoft
what is a capital resource?
tools and equipment needed to produce goods or service
opportunity cost?
the most desirable alternative given up as the result of a decision
What is law of demand?
If price falls then quantity demanded will rise
What are economic incentives?
incentives to influence behavior
What is a monopoly?
a company has %100 of control of the market
what is a human resource?
people who work to produce goods or service