Vocabulary 1
Consumer
Individual who purchases a good or a service
Command Economy
Economy where the government determines what goods are produced and services are offered. Government has full control of the Economy.
Who is Adam Smith?
Economist who wrote the basic outline of our Free Enterprise Economy
Free Enterprise
type of economic system where the government places minimal restrictions on the businesses and its citizens.
Allows citizens to pursue any career or educational path, business opportunity, or type of employment they wish.
Entrepreneur
Individual who starts, manages and takes on the risk of starting their own business
Profit
Amount of money made after all expenses are paid
Market Economy
Based on Free Enterprise principles such as freedom of the economy, law of supply and demand, and the 3 fundamental Economic Questions.
What book did Adam Smith Write?
Wealth of Nations 1776
What is the term used whenever you make a purchase that involves an exchange of money for a product or service. You are participating in a....
Market
Name at least two Entrepreneurs.
Elon Musk, Henry Ford, etc....
Economic Competition
Two or more businesses that produce or sell similar products compete against one another.
3 Basic Questions, Every Single Economy(Country) must answer.
What to Produce
How to Produce it
For Whom to Produce?
What is the Invisible Hand?
suggestion by Adam Smith, that people act in their own self-interest, such as opening businesses or seeking profit, also benefit society as a whole by creating jobs, goods and innovation.
The other term that is used interchangeably with Free Market Enterprise
Capitalism
Scarcity
Rare
Economic Systems
Method governments use in order to decide how to allocate their natural resources, goods and services.
Supply & Demand
Supply- the amount of goods and services that are produced or available to consumers.
Demand- willingness, desire and ability to purchase a product.
What is Innovation?
People or businesses that improve products, making them better, faster, more efficient, etc...
Name two Countries that have a Command Economy
North Korea, China, Vietnam, Cuba
Private Property
Individuals ability to own property, land, business, resources in order to make a profit.
Tradition Economy
Economic system that is very primitive and produce goods and services for their own consumption and not to make a profit or as a commercial company. Similar to indigenous tribes.
How much money did it cost advertisers for a 30 second advertisement in the Super Bowl?
7 Million Dollars
What type of Relationship does America want the government to have with business.
limited government regulation, influence, take the laisse-faire approach.
What is Economic Freedom
Ability to pursue any educational path you would like to after high school, pursue any purchases you want, and follow any career path you see fit.
Consumer Sovereignty
The idea that the Customer is always right, due to the consumer being the one in charge of a business' success. If there are no customers, then the business will fail. businesses will need to listen to consumers to improve products.