Vocab
Work done for someone you cannot touch
what is a service
Money left after costs are paid
What is profit
A business owned by one person
What is a sole proprietorship
An economy run by the government
what is command economy
A significant decline in economic activity lasting longer than a few months
what is a recession
A product you can touch and buy
What is a good
What is demand
A business owned by two people
what is a partnership
An economy run by the buyers and sellers
what is market economy
The highest point of economic productivity and profits in the business cycle
What is a peak
Money spent to run a business
What are expenses
How much businesses are willing to make
What is Supply
someone who owns shares in a company
what is a shareholder
an economy with government and private business
what is mixed economy
During this stage, businesses raise prices and consumers are spending more
what is a peak
Who is a consumer
Money needed for each level of production
What are costs
Using your own money to start a business
what is equity financing
businesses owned by individuals
what is the private sector
During this stage, unemployment increases and businesses struggle
what is a recession
The money a business keeps after paying all expenses
What is profit
A rule stating that high prices lead to more supply
What is the Law of Supply
borrowing money from a bank
what is debt financing
services run by government
What is the public sector
a rare and extreme version of a recession
what is a depression